When it comes to financing, fees and account managers, Canada's credit unions do a better job of meeting the needs of small businesses compared to banks, according to a new report.
The Canadian Federation of Independent Business surveyed nearly 13,000 small business owners and found that credit unions achieved the highest overall score of 7.4 out of 10.
The greatest strengths were in financing with a score of 6.0, 7.5 for fees and 7.2 for account managers.
Credit unions were also better at serving micro businesses, which was defined as those having fewer than five employees, according to the CFIB report Battle of the Banks. High marks were given for offering clear bank statements, branch access and online banking service.
With an overall score of 7.4 out of 10, businesses with five to 49 employees favored credit unions for financing, fees and account managers but trailed banks in branch access and online banking service, the data showed.
Mid-sized businesses with 50 to 599 employees generated a score of 8.5 out of 10, favoring credit unions over banks in nearly all areas.
Meanwhile, Canada's largest banks fell short in several of the areas tracked with scores as low as 1.0 for fees. One exception was TD Canada Trust, which scored a 9.0 for service, the report said.
The CFIB looked at services at credit unions across Canada and some of the country's largest banks including Bank of Montreal, Scotiabank, Royal Bank, TD Canada Trust, National Bank, HSBC, ATB Financial and CIBC.
“Banks need to pay close attention to the report's findings if they are serious about serving the small business market,” said Doug Bruce, CFIB vice president of research.
Dan Kelly, CFIB president/CEO reiterated that point, saying, “Access to affordable financing and banking services is essential for hard-working entrepreneurs, and it's clear that all of the banks should do more to serve small-business clients.”
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
