Overall, satisfaction among small business owners with their banks declined in 2013, but they seem content with fee structures, according to the latest J.D. Power study.
The dip in overall satisfaction is blamed on “problem resolution and with the most frequently used transaction methods, branch and online,” J.D. Power found.
Fifty-five percent of customers perceive their bank as technologically innovative, down from 67 percent in 2012, which reflects dissatisfaction with the online process, including mobile transactions.
“Small business customers continue to rely on the branch for many of their routine transactions, even though retail consumers are quickly migrating to self-service channels, including online and mobile,” said Jim Miller, senior director of banking at J.D. Power. “Banks are falling short of small business customers’ expectations in both the branch and offering innovative services to make it easier to manage their finances.”
Miller added that financial institutions should focus on customizing products and services to the needs of their small business customers, instead of expecting them to “make due with those that are designed for retail customers or larger commercial relationships.”
J.D. Power found that Chase ranks highest in small business banking satisfaction in the Midwest, West and South regions. Chase does particularly well in product offerings; facility; credit services; fees; and channel activities.
TD Bank ranks highest in the Northeast region. TD performs well in product offerings; facility; account information; and channel activities.
Here is J.D. Power’s highlights:
- Overall satisfaction among small business banking customers has decreased in 2013 by 9 points (on a 1,000-point scale).
- Banks made fewer changes to their small business customers’ fee structures in 2013, which contributes to the increase in satisfaction with fees.
- Mobile banking satisfaction increases 27 points, although usage among small business customers remains low at only 11 percent.
- Fifty-five percent of customers perceive their bank as technologically innovative, down from 67 percent in 2012.
- Forty percent of small business banking customers with an assigned account manager indicate at least one change in account manager during the past year, negatively impacting overall satisfaction.
The 2013 U.S. Small Business Banking Satisfaction Study, now in its eighth year, includes responses from nearly 9,100 small business owners or financial decision-makers who use business banking services.