Small businesses rank credit unions ahead of Canada's big banks, CFIB finds
Small businesses are happier with the financial services they receive from credit unions than with those provided by the country’s five largest banks, a survey by the Canadian Federation of Independent Business has found.
The advocacy group asked small businesses to rate, on a scale of zero to 10, how their financial institutions performed in a range of categories, including financing, fees, account management and service quality.
Credit unions, which were assessed as a group, had topped the list when the survey was last conducted in 2019 and maintained top spot in 2022, with an overall score of 5.9. They also ranked highest in the “banking fees” and “account manager” categories. Desjardins Group rose to second place from seventh in 2019, while National Bank of Canada jumped one spot to third.
Royal Bank of Canada recorded the biggest jump by a large bank, to fourth. Canadian Imperial Bank of Commerce and Bank of Nova Scotia each moved up one place, to fifth and seventh, respectively, while Bank of Montreal and Toronto-Dominion Bank each fell one spot to sixth and eighth, respectively. Alberta Treasury Branches (ATB Financial) dropped from second in 2019 to ninth, amid criticisms of its response to the pandemic.
The report also broke down the results by the size of the small business. For those with up to four employees, National Bank came first, tripling its score from 2019. For businesses with five to 49 employees, Desjardins and National Bank lead the way.
Corinne Pohlmann, CFIB’s executive vice-president of advocacy, said there was a disconnect between the banking services offered by large banks and the needs of small businesses.
“While big banks hold most of the small business market share, they’re not serving their
Read more on financialpost.com
