Communication is key to attracting small businesses

Big banks dominate the small business market despite having lower net promoter scores.

February 7, 2017 by Marcus Rothaar, CU Magazine

Small businesses that use a credit union for their financial services are typically more loyal—and exhibit higher levels of satisfaction—than those that use a bank, according to new Raddon Research Insights data.

While many small businesses that use a credit union as their primary financial institution (PFI) are likely to recommend their credit union to others, the number of small business credit union members remains small.

Communication of capabilities is one way credit unions can help boost future market share.

Word-of-mouth potential

Raddon recently surveyed 1,200 small businesses and found that 91% of respondents who use a credit union as their PFI are likely to remain with the credit union. By comparison, 81% of small businesses using a bank as their PFI are likely to remain with their current provider.

Small businesses that use a credit union as their PFI are also more likely to recommend their credit union to family members or friends than small businesses that use a bank.