Small Business Banking Customer Satisfaction Continues to Decline

The results are in from the J.D. Power 2017 U.S. Small Business Banking Satisfaction Study,SM released last week, and the message is a bit of a broken record; small business banking customer satisfaction is declining. Their study reports that overall small business bank customer satisfaction has declined year over year. From the report:

“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.”

This correlates with the results of a June to July 2017 Aite Group survey of 1,000 U.S.-based businesses generating between US$100,000 and US$20 million in annual revenue with the intention of understanding how well US-based small businesses are being served by their bank partners. This study found that more than 60% of small businesses rate their bank’s onboarding capabilities as average or needing improvement in important areas, such as the length of the onboarding process, the amount of automation, the ability to auto-populate forms, and the ability to digitally sign and exchange documents.

The Aite survey also shows that approximately 19% of small businesses state they probably or definitely will consider switching, or will actually switch to a new bank or financial institution over the next two years.

The results from the research is in a white paper titled, “Benefits of Investing in Digital Onboarding for Small-Business Banking”, commissioned by Avoka and produced by Aite Group, which explores the research and the importance of efficient onboarding in the small business banking space.

Want to learn more about this topic? Join us for a webinar, hosted by American Banker, where Christine Barry of Aite Group and Derek Corcoran of Avoka will review the report findings and talk about how banks can simplify the SMB bank onboarding process, and better upsell and cross sell once they become customers. We think some of the result findings will surprise you.

Don Bergal
Don Bergal

Don is CMO, building and leading worldwide marketing at Avoka. He has a successful 25 year record of growing technology businesses in marketing, operations, and sales management, particularly with early stage and high growth companies.

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