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Banking Online

Entrepreneurs have been slow to adopt online banking--with good reason. But some banks are trying hard to win them over.

This story appears in the October 2005 issue of Entrepreneur. Subscribe »

In theory, the convenience and simplicity of make it a godsend for busy entrepreneurs. Yet recent surveys show that small-company CEOs are slow to migrate their online, lagging behind consumers and big companies.

A survey released in December 2004 by Forrester Research found that while small-business owners are active users, only 19 percent of those surveyed were actively using online banking, and just 13 percent were actively paying bills online. The " Research 2005 Study," performed by Edgar, Dunn & Co., a global financial services and payments consultancy, and Collective Dynamics, a management and technology consulting firm, found that while 57 percent of responding entrepreneurs used online banking daily or weekly, only half paid their bills online; 28 percent had no interest at all in online banking. Why? The most commonly cited reason, reports John Bresnahan, director at Edgar, Dunn & Co., was concern about internet security.

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