by Morinville Online Staff
The Canadian Federation of Independent Business (CFIB) says one in ten business owners switched banks at least once between 2019 and 2022. The data comes from a new CFIB survey. Among those shifts, TD Canada Trust (TD) and credit unions made the biggest gains, with TD’s market share increasing by 0.7 and credit unions by 0.6 percentage points.
Poor customer service was the reason for 52 per cent of business owners. Access to financing was the second highest motivator at 44 per cent, and fees and pricing came in third at 39 per cent.
The CFIB report indicates that small business customers were most likely to switch banks due to poor customer service. among the big five banks. For smaller financial institutions, the most common reason for switching was due to issues with accessing financing.
“Small business owners often feel like the service they receive from larger banks is not fully up to the standards they expect, so it is not surprising that they choose to switch their banks,” said CFIB enior Vice-President of National Affairs Corinne Pohlmann. “If the big banks want to retain their small business clients, their primary focus should be on improving their customer service.”
The CFIB report showed that Royal Bank of Canada (RBC) retained the top spot in 2022 as the bank with the greatest small business market share at 19 per cent. Scotiabank maintained its second place with 17 per cent of the market. TD came in third with 16 per cent. TD was the only one of the big five banks to gain ground since CFIB’s last banking report in 2019.
The full report is online at the link below: