Banking giant Capital One surpasses Citibank in customer satisfaction among small businesses in the banking sector

In the recently published J.D. Power 2023 U.S. Small Business Banking Satisfaction Study, Capital One has taken the top spot, surpassing Citi from last year's No. 1 position. The study, calculated from May through August this year, gathered insights from around 7,104 small-business owners using business banking services.

The study is based on seven key factors, including account services, channel activities, product offerings, problem resolution, bill payment, and fee-related issues. According to the findings, small businesses find phone-based assistance easier to use, while satisfaction among sole proprietors did not show significant improvement, with lower satisfaction for problem resolution and less utilization of digital services.

The study also highlighted the importance of relationship managers in increasing the satisfaction index. Improved responsiveness, more frequent communication, and a growing view that they act as partners in business growth were key factors in this regard.

In addition to Capital One, the top 10 banks in customer satisfaction for small business banking in 2023 include U.S. Bank (second place) and Chase (third place), as well as First Citizens Bank, Citi, Bank of America, KeyBank, and Regions Bank.

The study also revealed that inflation is taking a toll on small businesses, yet small-business owners are more hopeful about the future, with nearly 54% saying their business is financially healthy.

Another significant finding was the growth in satisfaction with digital channels like websites and mobile apps. This was attributed to factors such as speed, visual appeal, navigation, information clarity, and service range. Around 57% of small business customers are receiving financial advice from banks, seeking advice on avoiding fees, spending and savings guidance, and improving creditworthiness.

Last year, small-business owners were keen to get advice from their bank partners to navigate rising inflation, supply chain issues, and labor market tightness. According to McAdam, if banks could help small businesses with credit during this challenging time, it would result in increased overall satisfaction and loyalty.

The top-ranked bank, Sparkasse Kraichgau, was recognized as the "Best Bank on Site" repeatedly and won first place in the DIN bank test by Gesellschaft für Qualitätsprüfung and Focus Money. However, specific rankings of other banks in the top 10 were not found in the available search results.

Overall, the study shows a marked difference in the satisfaction index compared to last year, indicating a shift in small businesses' preferences and expectations from their banking partners.

Banking giant Capital One surpasses Citibank in customer satisfaction among small businesses in the banking sector