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 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.”