Small business banking satisfaction decreases

WESTLAKE VILLAGE, Calif. -- Small business banking customers are more optimistic about the economy and their future compared with one year ago, but both satisfaction with and loyalty to their bank continue to decline, according to a new survey by J.D. Power and Associates.

The 2010 U.S. Small Business Banking Satisfaction Study found that overall customer satisfaction declined for a second consecutive year, decreasing to 711 on a 1,000-point scale from 718 in 2009. Small business customers have the lowest satisfaction levels among customers in the financial services industry.

"Despite a sense of optimism in the industry among small business owners, it appears that their financial institutions are failing to keep up with their expectations," said Michael Beird, director of banking services at J.D. Power and Associates. "Banks are a critical support mechanism for small businesses, so these customers may be experiencing some frustration with the lack of support. For example, satisfaction with the availability of credit continues to decline. However, those banks that are able to deliver on key practices and partner with their small business customers have an opportunity to differentiate themselves."

The banks scoring the highest customer satisfaction rating were: SunTrust Bank, 751; Huntington National Bank, 748; KeyBank, 747; BB&T, Regions Bank and TD Bank each scored 745 points. Bank of America and Citibank received the lowest satisfaction rating with 682 points.

The study found that banking satisfaction is highest among customers who believe they have a collaborative relationship with their bank.

The full study can be found on J.D. Power and Associates website.