How Likely are SMBs to Switch Banks?

How likely are SMBs to switch banks? To find out, we recently surveyed 500 U.S. SMB principals. The short answer is, surprisingly likely – at least when surveyed. 14% of Microbusinesses (M, less than $500K in annual revenue) are very or extremely likely to switch, versus 23% of Small Businesses (SBs, $500K to $5 million) and 21% of Commercial (C, $5 million or more). This is somewhat counterintuitive, given that Microbusinesses are much less satisfied in general with their bank (28 NPS) than Small Businesses (56 NPS) and Commercial (62 NPS).

SMB Bank Switching Likelihood, by Size

Switching propensity varies by bank type. SMBs are most likely to defect from regional banks (22% very or extremely likely) and major national banks (15%). They are least likely to switch from credit unions and online-only banks (tied at 9%), and local or community banks (3%).

SMB Bank Switching Likelihood, by Bank Type

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