Stressed small business owners looking for banks to weather the tough economy find JD Power

TROY, Mich.–(BUSINESS WIRE)–Feeling the strain of a slowing economy, small business owners seek help from their small business banking partners, but very few have exceptional experiences. According to the JD Power 2022 US Small Business Banking Satisfaction Study,SM released today, half of small businesses across the country are now classified as financially unhealthy,1 and although 76% of them are interested in receiving financial advice from their bank, only 15% receive full advice.

“Facing an increasingly ominous set of challenges that include everything from ongoing supply chain issues to inflation and a talent shortage, small business owners are turning to their banks for advice on things like available credit, tips on how to reduce fees and Technologies for this can benefit their businesses,” said Paul McAdam, Senior Director of Banking and Payments Intelligence at JD Power. “This scenario represents a tremendous opportunity for banks to offer comprehensive advice that takes into account a thorough understanding of the company’s business objectives and demonstrates genuine, committed partnership. Currently, most small business banking customers receive only transactional advice or no advice at all from their bank.”

Below are some of the key findings from the 2022 study:

  • Banks miss the opportunity for comprehensive advice: JD Power evaluates the small business banking advisory experience on a continuum from transactional to constructive to comprehensive based on the bank account manager’s overall responsiveness, understanding of the client’s business, and the bank’s fulfillment of the role of a trusted advisor and partner. Currently, only 15% of small business bank clients receive comprehensive advice, while 27% receive constructive advice and 58% receive transactional advice. The overall satisfaction of the comprehensively advised clients is 858 (on a 1,000-point scale), which is 82 points higher than those who received constructive advice and 195 points higher than those who received transactional advice.
  • Relationship managers play a key role: The biggest factors influencing customer satisfaction in small business banking are trust and people, both areas where bank account managers play a key role in explaining fee structures, solving problems and providing advice. In the eyes of smaller companies, bank relationship managers who provide operational advice fulfill this role but are not perceived as a partner acting in the long-term interest of the company and helping the company to grow.
  • Small businesses feel the strains of a flagging economy: Only 50% of small business bank customers are classified as financially healthy, while 25% fall into the cash or capital limited category and 25% into the financially vulnerable category. Some of the biggest factors affecting the financial health of small businesses are inflation (60%), supply chain disruptions (44%) and talent retention/attraction (36%).
  • Key Pain Points: Some of the top areas where small businesses seek advice from their banking partners include practical guidance on reducing banking fees; Tips to improve the company’s financial situation; and to understand how the bank’s technology can benefit the company.

study ranking

city highest in the country for customer satisfaction in small business banking, with a score of 706. capital one (701) second and Union Bank (691) in third place.

The 2022 US Small Business Banking Satisfaction Study includes responses from 6,855 small business owners — or financial decision makers — who use business banking services. The study was conducted from May to August 2022. The study also provides benchmarking data on the Health Financial Support Index, which assesses banks’ ability to provide financial support to small business customers. The top-performing banks in the Small Business Financial Health Support Index are (in alphabetical order): Bank of America, Capital One, Citi and Santander Bank.

For more information about the US Small Business Banking Satisfaction Study, visit https://www.jdpower.com/resource/us-small-business-banking-satisfaction-study.

See online press release at http://www.jdpower.com/pr-id/2022152.

About JD Power

JD Power is a leading global provider of consumer insights, advisory services, and data and analytics. A pioneer in using big data, artificial intelligence (AI), and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering concise industry insights into customer interactions with brands and products for more than 50 years. The world’s leading companies in key industries rely on JD Power for their customer-centric strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. JD Power’s auto shopping tool can be found at JDPower.com.

About JD Power and Advertising/Advertising Rules: www.jdpower.com/business/about-us/press-release-info

1 JD Power measures a small business’ financial health as a metric that combines timeliness of paying bills, cash on hand, creditworthiness, and safety net elements such as insurance coverage. Small businesses are placed on a continuum from healthy to vulnerable.

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