Canadian Small Business Financial Health and Customer Satisfaction
The financial health of small businesses in Canada has been of significant concern in recent years. An alarming 60% of these businesses are financially unhealthy, a noticeable rise from previous years. This unfortunate circumstance has resulted in a subsequent decline in small business satisfaction with their primary banking partners. According to JD Power, satisfaction has dipped for the second consecutive year. On a 1,000-point scale, the overall satisfaction among small businesses has dropped by 3 points, registering at 652.
JD Power 2025 Canada Small Business Banking Satisfaction Study – Main Business Concerns
In the face of these challenges, small businesses have voiced their top economic concerns. Inflation tops this list, with 54% of respondents citing it as a significant concern. This figure, however, has reduced from 61% in 2024. Tariffs have also emerged as a challenge for small businesses, with 40% of respondents listing it in their concerns. Supply chain constraints, though slightly reduced from the previous year, still trouble 34% of the respondents.
Paul McAdam, senior director of banking and payments intelligence at JD Power, asserts the strong relationship between a business’s financial health and its satisfaction with its bank. He observes that financially healthy small businesses report higher satisfaction, with a gap of 126 points, than those that are financially vulnerable or constrained by cash or capital. McAdam further highlights the importance of proactive communication, services that support small business financial health, and bank relationship managers in assisting small businesses.
JD Power 2025 Canada Small Business Banking Satisfaction Study – Other Key Takeaways
E-Commerce small businesses are more satisfied. Regardless of their financial health, e-commerce businesses report significantly higher satisfaction with their primary financial institution than those operating in other industry sectors (698 vs. 624, respectively).
Importance of financial advice. A significant 71% of e-commerce businesses have confirmed receiving financial advice or guidance from their bank during the past year, while only 53% of other businesses received a similar service from their bank. Despite this disparity, an impressive 93% of all small businesses confirmed that the advice they received influenced their business habits.
Proactiveness goes a long way: Among the top key performance indicators that have the greatest effect on satisfaction are receiving proactive communication from the bank, the bank explaining its fee structure, and not experiencing a problem with the bank. Small businesses value receiving proactive guidance from their banks, particularly on how banks can help businesses save time or money and avoid problems.
RBC Tops Study Ranking by Major Bank Brands
When it comes to customer satisfaction in small business banking, RBC takes the top spot with a score of 663 on the 1,000-point scale. BMO follows closely at 653, with TD (651), CIBC (647), and Scotiabank (641) trailing behind.
For more details on the JD Power 2025 Canada Small Business Banking Satisfaction Study, click Here.
