X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Banks are demanding more personal guarantees on small business loans as the lenders continues to put the squeeze on credit access.The finding is according to an Oct. 20 J.D. Power and Associates small business banking satisfaction survey of 7,226 responses from financial decision makers at small businesses with annual revenues from $100,000 to $10 million. Credit unions were not mentioned in the survey.Sixty-seven percent of respondents said they had to produce personal guarantees when applying for small business loans. The data showed the average time to approve and fund loans made within the past six months increased to 15.1 days from 13.1 days in the previous six months. One area that may help credit unions and banks build relationships is assigning an account manager to small business customers. The survey found that overall, satisfaction averaged 726 on a 1,000-point scale among customers who were assigned an account manager, compared with 669 among customers without a designated account manager.The study also found that higher satisfaction among small business customers has a substantial impact on a bank’s financial performance. Overall, highly satisfied customers generated $4,107 of annual net revenue each on average, which is $675, or 20% more than less-satisfied customers.Account managers can better understand their customers’ businesses by establishing a dialogue with them at the beginning of the relationship and maintaining communication through ongoing proactive contact, J.D. Power found. Among new customers who report their account manager “completely” understood their business, a thorough needs assessment is conducted 85% of the time, compared with only 35% of the time among customers who reported their business is not understood. Customers who reported their business is “completely” understood by their account manager received 3.3 contacts each year, compared with 1.3 contacts among customers who say their account manager does not understand their business.Thirty-four percent of customers who have an assigned account manager report having had a problem with fees and service charges, compared with 39% of customers without an assigned account manager. Just 10% of customers with assigned account managers reported issues with funds availability versus 16% for those without an account manager.For the third consecutive year, TD Bank ranked highest in small business customer satisfaction followed by Branch Banking & Trust and Huntington National Bank.–[email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.