Small Business Banking Satisfaction Declines as Service Quality Suffers, J.D. Power Finds
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Small Business Banking Customers Seek Stronger Partnership with Their Bank
COSTA MESA, Calif.: 26 Oct. 2017 — Many small businesses are feeling neglected by their banks as satisfaction in nearly every factor declines, according to the J.D. Power 2017 U.S. Small Business Banking Satisfaction Study,SM released today.
“Small business banking is one of only two financial services industries measured by J.D. Power to show year-over-year declines in customer satisfaction in 2017,” said Bob Neuhaus, Financial Services Consultant at J.D. Power. “The performance gaps we’re seeing are pervasive, affecting virtually every customer touch point with the bank. Customers without an account manager and non-borrowers are especially vulnerable to competitive poaching and represent an important opportunity for banks to deepen relationships across multiple products.”
Following are some key findings of the study:
- Small business banking satisfaction declining: Overall small business bank customer satisfaction declines to 790 (on a 1,000-point scale) in 2017 from 797 in 2016, driven primarily by declines in account activities (-1.9 points); problem resolution (-1.5); fees (-1.5); and account manager (-0.8).
- Account managers play major role in relationship: Overall satisfaction is 135 points higher among small business customers who have been assigned an account manager and who say they feel they have a full partnership with that account manager (887) vs. those who do not have an account manager (752). However, customers who indicate having an account manager that does not fully understand their needs are even less satisfied (743) than those who have no account manager at all. Currently, just 52% of small business customers say they have been assigned an account manager.
- Small business lending is window to improving customer relationships: Small business customers who have borrowed money from their banking institution are significantly more satisfied than non-borrowers (822 vs. 757, respectively). The borrowing process is an important opportunity for small businesses to build a trust-based relationship with their banks.
- Customers with account managers more likely to promote bank: Net Promoter Scores,® which measure the percentage of customers who are loyal enthusiasts who keep doing business with a company and urge their friends to do the same, are a significant 29 points higher among small business banking customers who have an account manager assigned than those who do not.
Chase ranks highest in small business banking satisfaction in the West region for a fifth consecutive year, with a score of 819. Chase is followed in the West region by U.S. Bank (797) and Bank of the West (788).
M&T ranks highest in small business banking satisfaction in the Northeast region with a score of 815. Capital One ranks second (813) and TD Bank ranks third (809).
Citibank ranks highest in the Midwest region, with a score of 839, followed in a tie by Bank of America and Fifth Third Bank, each with 806.
TD Bank ranks highest in small business banking satisfaction in the South region, with a score of 819. It is followed by Capital One (817) and Chase (815).
The 2017 U.S. Small Business Banking Satisfaction Study includes responses from 8,378 small business owners or financial decision-makers who use business banking services. The study was fielded in June-August 2017.
For more information about the U.S. Small Business Banking Satisfaction Study, visit http://www.jdpower.com/resource/us-small-business-banking-satisfaction-study.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.
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