Overall small business customer satisfaction with their bank rebounded from 2013, according to the J.D. Power 2014 U.S. Small Business Banking Satisfaction Study. However, regional banks are still losing ground among small business customers, says J.D. Power.
The study measures small business customer satisfaction with eight factors:
- Product offerings
- Account manager
- Account information
- Problem resolution
- Credit services
- Channel activities
According to the study, regional banks are losing ground and may be stuck in the middle as big and midsize banks have built on their respective strengths. Big banks continue to lead in offering large networks of branches and ATMs, along with easy self-service options, while increasing their focus in providing personal service.
Midsize banks continue to receive high marks for personal service and offering low fees and have become more competitive in the technology they offer their customers.
Customer satisfaction with big banks is up 19 points, to 768 from 749 (on a scale of 1-to-1,000); and satisfaction with midsize banks is up 18 points to 780 in 2014 from 762 in 2013. Satisfaction for regional banks has improved by 4 points to 758 in 2014, up from 754 in 2013. Big banks and midsize banks surpass regional banks by 10 and 22 points, respectively.
Key findings you can take to the bank
- Overall satisfaction among small business banking customers is 766, up 14 points from 752 in 2013.
- Big banks and midsize banks now lead regional banks in all factors.
- Big banks excel at offering convenience; and lead in facility with longer hours and more locations, website, ATM, automated phone and mobile.
- Midsize banks lead in fee satisfaction and credit services as well as in customer service relationship building with account managers and in-person transactions.
- Problem incidence is highest at regional banks at 24 percent (down 1 percentage point from 2013), compared with 23 percent at big banks (down 4 percentage points) and 21 percent at midsize banks (down 2 percentage points).
- Nearly two-thirds (60%) of small-business customers with high satisfaction (overall satisfaction scores of 800 and above) say they “definitely will” recommend their bank, compared to just 11 percent of those with medium satisfaction (500 to 799) and only 2 percent with low satisfaction (less than 500).
- On average, small-business customers with high satisfaction have 6.3 business products with their primary bank, compared to 4.8 for those with medium satisfaction.
Chase ranks highest in small business banking satisfaction in the West region (for second year in a row) and in the Northeast region, performing particularly well in product offerings; facility; account information; credit services; account manager; and channel activities.”
Huntington National Bank
Huntington National Bank ranks highest in small business banking satisfaction in the Midwest region and performs particularly well in facility; fees; account information; and channel activities.
Regions Bank ranks highest in the South region and performs particularly well in product offerings; account information; and channel activities.