The J.D. Power 2020 U.S. Small Business Banking Satisfaction Study reveals it is at a record high during the pandemic. This is taking place even though customers are having less access to branch offices, a remote workforce, and the administration of the $669 billion Paycheck Protection Program (PPP) by banks.
Overall, the study says the performance in the small business sector is strong. However, there is a gap between the satisfaction of smaller businesses and their larger small business associates.
JD Power Small Business Banking Satisfaction Survey
Paul McAdam, senior director of banking and payments intelligence at J.D. Power, further explains the challenge in the press release for the study.
McAdam says, “… the performance is not balanced across all small business segments… That’s a sign that many banks still need to refine their small business formulas to address this highly diverse market.”
The Study and Key Findings
the 2020 study was carried out from June through August 2020 with the participation of 7,507 small business owners or financial decision-makers at small businesses that use business banking services.
- On a 1,000-point scale, the overall satisfaction among small businesses is 822. This is up two points from 2019.
- The role of PPP is big in small business customer satisfaction. When the loans are approved satisfaction was higher (838) and lower when denied (796).
- Overall, 36% of small business banking customers applied for a Paycheck Protection Program (PPP) loan through their primary bank.
- Trust, advocacy and retention are significantly higher when customers are happy with their bank’s support of PPP issues.
- Dedicated account managers make a big difference in banking customer satisfaction. This also includes their PPP loans and solving problems addressing pandemic response and concerns.
The result of the bank rankings differs depending on the region of the country. In the Midwest, Bank of America ranks highest with a score of 847. Fifth Third Bank (846) and Chase (839) take up the second and third place, respectively.