Small business owners are more optimistic about the future than they were a year ago reports JD Power. Slightly more than half (54%) say their business is financially healthy, but inflation is still having a negative effect.
Banks are doing a better job of helping small businesses navigate current market conditions. Examples include improved digital tools and more supportive telephone service and small business relationship managers.
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Paul McAdam, senior director of banking and payments intelligence at JD Power, said: “Small business owners say that banks have reduced friction in digital and telephone banking services, while improving the courtesy and knowledge of branch staff and relationship managers. These improvements are paying off in the form of increased utilisation of bank advice and significantly higher overall satisfaction and advocacy scores among small business customers. Banks can continue this positive momentum by blending digital services and human support with generative AI-driven technologies to improve personalisation and customer engagement.”
JD Power 2023 US Small Business Banking Satisfaction Study key takeaways
Live phone and digital support channels are driving satisfaction. Overall satisfaction with live phone-based support increases this year as small businesses find it easier to get the help they want.
Relationship managers influence banking experience. Another big factor influencing small business banking customer satisfaction is the role of the relationship manager. Overall satisfaction with small business relationship managers has increased this year. This is due to improved responsiveness, more frequent communication and a growing perception that relationship managers are partners who help the company grow.
Advice is playing a critical role in navigating the uncertain economic environment. More businesses than ever are receptive to receiving financial advice from their bank. Currently, 57% of small business customers are receiving such advice.
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By GlobalDataFinally, sole proprietors present an engagement challenge for banks. Sole proprietors is the only category not to improve in customer satisfaction in this year’s study. Satisfaction is lower among this segment of small business owners for problem resolution. Owners in this segment are also less likely to use bank-provided spending and savings guidance and digital services. These include spending analysis, budget tools and cash flow projections.
Study ranking
Capital One ranks highest nationally in small business banking customer satisfaction with a score of 723 (on a 1,000 point scale). US Bank (713) ranks second ahead of Chase (711) in third. First Citizens (707), Citi (692) and Bank of America (690) follow. The top 10 is rounded off by KeyBank, Regions, Fifth Third and Huntington.
