Buddy System

Advances in computer and interactive technology are rapidly putting the kind of information and services once available only to large corporations within reach of small businesses. National City Bank of Columbus in Ohio, designed its Desktop Banking program with small-business owners in mind, says Anne Jennings, vice president of the Business Services division.

Using Desktop Banking, business owners can access all their National City accounts via computer to check balances, transfer funds and even make quarterly tax payments. The software package costs $150 to set up, then $50 per month for the first account and $7.50 per month for subsequent accounts. Jennings says most businesses' cash reserves cover finance charges, so most don't pay for the service.

James Shaffer, vice president of administration at Paul J. Ford and Co. in Columbus, Ohio, uses Desktop Banking to handle payroll and cash management at the 30-employee structural design and engineering firm. "It's a way to do banking whenever you want," Shaffer says. He cites simplifying payroll as the primary advantage of the system, which allows the company to offer automatic paycheck deposits to its employees.

Wells Fargo's Business Gateway, an online service for small businesses, has a special feature that warns business owners when their cash accounts fall below a certain pre-programmed level. The idea came from a focus group, says Dial, who adds, "Our best ideas have always come from our customers." Introduced on a limited basis last summer, the $5 monthly service will be rolled out to Wells' customers this year, but Dial says word-of-mouth has already resulted in a subscriber base "in the thousands."

First Southern Bank will launch its own online banking program next month. Santom says the program will focus initially on business accounts, allowing customers to stop checks, transfer funds and the like. "A couple of years ago, it would have cost us $1 million to do this," he says. "Now we can do it for $25,000."

After all, banks are businesses, too. If they can make catering to small companies profitable, they will do it. The trend toward designing bank products and services for small business is not yet comprehensive in scope, but experts say it could pick up if the economy and small businesses stay strong. The banks--and the small-business products and services--profiled here represent just some of the many programs banks are offering nationwide. With so many choices available, be sure you shop around or request even more from your current bank.

This article was originally published in the March 1997 print edition of Entrepreneur with the headline: Buddy System.