Business Owners Unsatisfied With Banking Services

Between 2019 and 2022, one in 10 business owners switched banks at least once, says the Canadian Federation of Independent Business (CFIB). Fifty-two per cent of customers who switch banks cite poor customer service as the reason, followed by issues with accessing financing (44 per cent), and fees or pricing (39 per cent). For smaller financial institutions, the most common reason for switching was due to issues with accessing financing. Regional financial institutions continue to rank first among business owners, beating out the bigger banks. Small firms also tend to favour different banks based on their business size. "It is essential for small business owners to have access to affordable banking and financing needs. If banks develop an offer that is more accessible and goes beyond day-to-day banking needs, small firms will have a greater chance to succeed and contribute to the overall economic health of the country," says Corinne Pohlmann, senior vice-president of national affairs at CFIB.