Inside the 2024 Small Business Banking Satisfaction Boom
With banking satisfaction among small business decision-makers reaching new heights, banks are capitalizing on fresh opportunities to support and grow their relationships with these important customers. In this episode of JD Power Monthly Intelligence Update, Paul McAdam, Senior Director of Banking and Payments Intelligence and Miles Tullo, Managing Director of Financial Services, share the latest insights from the JD Power 2024 Small Business Satisfaction Study and why satisfaction is trending up.
Small Business Sentiment: Their Banks
Paul McAdam explains, “Small businesses are feeling good, with a significant improvement in satisfaction for the second consecutive year. They’re especially appreciative of the increased client-centric, proactive, and personalized service they’re receiving.”
According to our recent study, small business satisfaction is on the upswing, driven by:
- Client-Centric Service: Banks are placing greater emphasis on personalized, proactive support.
- Improved Credit Access: Steady credit availability is empowering small business growth.
- High Retention Rates: Business owners are more likely to return for future services, a positive indicator of satisfaction.
Renewed Energy in Small Business Banking
There’s renewed interest in small business banking on both sides—banks and clients alike. Banks are increasingly looking at this line of business for growth, motivated by:
- Rise in New Startups: Post-pandemic, the rate of small business startups has remained robust.
- Dual Relationship Benefits: Small businesses often bring personal accounts with them, blending retail and business banking for deeper partnerships.
Top Performers in Small Business Banking
The 2024 U.S. Small Business Banking Satisfaction Study measures satisfaction based on seven key factors: trust, staff, convenience, account offerings, time and cost savings, digital channels, and issue resolution. The study reflects feedback from 6,976 small business owners or financial decision-makers using business banking services.
These banks are ranked the highest based on their Overall Satisfaction performance:
- Capital One
- Chase
- Regions Bank
- Huntington
- Bank of America
Building Lasting Relationships in Small Business Banking
While small business banking satisfaction is on the rise, there are still crucial areas for banks to address. Proactive communication is essential as businesses seek guidance on saving money and managing fees amidst rising costs. Relationship managers are increasingly important, with satisfaction levels rising this year, but digital tools are also vital for providing ongoing support. Curious about how banks can tackle these challenges and enhance the customer experience —watch the full video now.
Where can you find more insights like this?
The JD Power Small Business Satisfaction Study evaluates small business owners’ satisfaction with leading financial institutions. It uncovers opportunities for banks to enhance their support for small businesses in today’s market and beyond. The insights from this study highlight which banks excel in managing small business relationships and the reasons for their success. This study is available in both the U.S. and Canada.
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More About These Experts
Paul McAdam is a Senior Director of Banking and Payments Intelligence at JD Power. Clients rely on his expertise to gain a better understanding of how to improve the customer experience, with a particular emphasis on the regional banking segment. His research at JD Power has led dozens of research programs that have enabled leading U.S. banks and global financial technology companies to quantify market demand and measure customer experience.
Miles Tullo is the managing director of the JD Power Financial Services team. He oversees client engagement for the Financial Services Practice in North America and recently led the development and launch of the JD Power U.S. Consumer Point of Sale Payment Program. Drawing from over 20 years of experience in banking, payments, and mortgage lending, Miles brings valuable expertise to clients.
