LOMBARD, Ill. — Credit unions are sandwiched in between leasing companies and insurance companies as the provider of choice for small business owners, according to a new survey.
Raddon Financial Group's SPSG Spring 2007 Lending and Small Business survey showed that 92% of small businesses use a commercial bank as their financial institution. Credit unions were tied with leasing companies at 7% and insurance companies were used by 8% of respondents. Next to commercial banks, finance companies came in second at 30%. The numbers get even smaller for credit unions when respondents were asked about their "primary" financial institution. Only 1% use credit unions compared to 92% for commercial banks, 6% for savings banks and 2% for savings and loan associations.
In addition to its survey, Raddon looked at the Federal Reserve Board's 2003 survey of small business finances. Using year-end 2003 information for financial data captured, 4,240 small business firms, categorized as nonfarm entities with fewer than 500 employees, were surveyed.
Recommended For You
Among the trends that Raddon discovered were some financial institutions use loans as a lead service offering and some providers are moving away from high-touch delivery, opting for phone and online service. Banks are also taking the lead in adopting remote capture systems, the data showed. The survey detailed that 58% of bank respondents have adopted or plan to adopt the technology by the end of 2008. Fifty-eight percent also indicated that remote deposit capture would be their top technology-spending priority this year.
© 2025 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.
