Business owners taking to banking online

A recent study reveals that many women and men business owners are banking online, and that 66 percent of women business owners and 74 percent of men business owners who do so are at ease with using the Internet to manage financial business online.

According to a news release from Wells Fargo Bank, younger business owners are more likely to bank online both those who are younger themselves and the owners of newer businesses. Among those business owners who do bank online, women business owners appear more likely to visit the Web sites of their financial institutions.

Online habits

These findings from the Center for Women's Business Research (founded as the National Foundation for Women Business Owners) are based on a study examining online habits of business owners. The study, sponsored by Wells Fargo Bank and titled "Online and In Focus: How Women and Men Business Owners Use the Internet," suggests that the number of business owners using the Internet will continue to increase.

"Nearly one fourth (24 percent) of men and 18 percent of women business owners do at least some of their business banking online," said Colleen Anderson, executive vice president and head of California Business Banking for Wells Fargo. "And more than half of the women business owners (55 percent) and 37 percent of men business owners surveyed who bank online go to their bank Web site for general business or financial information. That's a significant opportunity for us to provide Web-based services that help small business owners manage the various growth cycles of their businesses anytime they choose."

Both women (60 percent) and men (65 percent) business owners indicated that the most important information they want on a financial Web site is a summary of account balances and all checks that have cleared.

Women business owners are just as likely as are men business owners to want to transfer funds between accounts online, see both business and personal accounts, and link to recommended sites for other business and financial information.

Men business owners were slightly more interested in paying bills online and getting investment advice.

The Center for Women's Business Research study is the most recent in a series of research initiatives by Wells Fargo Bank designed to develop a better understanding of the needs of all small business owners.

In July, Wells Fargo Bank co-sponsored a study conducted by the Tomas Rivera Policy Institute titled "Minority Businesses' Use of Internet Technology." The study addressed how larger minority owned businesses are using Internet technology for trade and commerce, and specifically focused on the challenges minority businesses face when engaging in e-commerce. Key findings were that 60 percent of those interviewed recognize and understand the benefits of Internet technology, yet do not take full advantage of e-commerce due to market challenges and barriers.

Value of Web sites

Most recently in August, Wells Fargo Bank partnered with the National Federation of Independent Business to launch the findings of a National Small Business Poll titled, "The Use and Value of Web Sites." The study examined the attitudes of small business owners toward Internet technology. Key findings revealed that 83 percent of respondents who go online use the Internet to communicate by email with suppliers or customers, and almost two-thirds (61 percent) purchase goods or services via the Internet.

Furthermore, 61 percent of users have a Web site for their business, and over 45 percent will have a Web site within the next year. Moreover, 32 percent of respondents indicated that they would use the Internet for business-related activities within the next year.