What small businesses want from their banks: Advice
What would make small business customers feel really satisfied with their bank? So satisfied that they would recommend the bank to others and expand their own banking relationship with additional products and services? The 2023 U.S. Small Business Banking Satisfaction Study from J.D. Power offers some insight.
Small business optimism is improving. In the J.D. Power 2023 U.S. Small Business Banking Satisfaction Study, small businesses expressed a brighter outlook and showed better financial health than a year earlier. They reported improved access to affordable funding to meet business goals and increased confidence in their ability to weather a cash shortfall.
With these improvements, the percentage of those who view their business as cash and/or capital constrained shrunk to 46%. That’s down from 50% a year earlier and 48% in 2021.
Yet, their optimism still remains below pre-pandemic levels, as market conditions continue to be challenging. More than half (55%) say that inflation is having a negative effect on their business.
With this blend of optimism and pressure, it’s no wonder 76% of small businesses are interested in receiving advice from their primary financial institution. And the banking industry is doing a slightly better job of responding to this need, with 57% of small businesses saying they received advice in the past 12 months, an increase of 3 percentage points from 2022.
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