Citizens lags Capital One in J.D. Power’s 2016 Small Business Banking Satisfaction Study

CAPITAL ONE ranked highest in the Northeast region in J.D. Power’s 2016 Small Business Banking Satisfaction Study released this week. / COURTESY J.D. POWER
CAPITAL ONE ranked highest in the Northeast region in J.D. Power’s 2016 Small Business Banking Satisfaction Study released this week. / COURTESY J.D. POWER

PROVIDENCE – Citizens Bank fell into the “about average” category in the Northeast region in J.D. Power’s 2016 Small Business Banking Satisfaction Study released this week.

Capital One ranked highest in the Northeast region with a score of 819 – satisfaction was calculated on a 1,000-point scale. Its score earned it a place in the “among the best” category.

The 11th annual study, which includes responses from 8,159 small business owners or financial decision-makers who use business banking services, was conducted from June through mid-August.

Small business customer satisfaction with the overall banking experience was measured by examining eight factors: product offerings; account manager; facility; account information; problem resolution; credit services; fees; and channel activities.
Wells Fargo was second in the Northeast at 807, and Chase third at 805. TD Bank was fourth at 801. Those banks fell into the “better than most” category.
Bank of America, Citizens Bank and Santander all fell below the Northeast average of 792. Bank of America’s score was 791, falling into the “about average” category, while Citizens scored 785. Santander ranked last at 760, in a category known as “the rest.”
The study said fast-growing small businesses can create both an opportunity and a problem for their banks.
It said small businesses that are growing sales 20 percent or more annually are more satisfied overall with their banking experience than small businesses with lower or no annual growth (844 versus 781, respectively).
The study also found that 22 percent of the fast-growing small businesses have switched banks in the past year, compared with only 5 percent of other small businesses. In addition, 25 percent of owners of fast-growing small businesses indicate they intend to switch within the next year, while only 7 percent of other small businesses indicate the same, the study said.
“If the business is growing, the owner is more likely to need new loans and banking products, and that makes them look around at other options,” Jim Miller, senior director of banking at J.D. Power, said in a statement. “Once they start exploring, it often doesn’t take long to move from considering switching banks to actually switching. For the banks, that means the risk of potentially losing customers, but it also creates the opportunity to acquire new customers from competitors. It’s critical that the banks consistently communicate the other products and services they have to help businesses continue to grow.”

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