Small businesses signal declining confidence in banks as satisfaction slips
Canadian small businesses are becoming less content with their banks as economic headwinds mount and financial health declines.
The newly released 2025 Canada Small Business Banking Satisfaction Study from J.D. Power reveals that overall satisfaction among small businesses fell by three points year-on-year to a score of 652 (on a 1,000-point scale).
The decline comes at a time when 60% of these businesses are classified as financially unhealthy or constrained by cash or capital, an indicator that the broader economic environment is having measurable effects on banking relationships.
Inflation remains top of mind for 54% of respondents, though this is down from 61% a year ago. Tariffs entered the list of concerns for the first time, cited by 40% of participants, while supply-chain issues were noted by 34%, slightly lower than the previous year’s 36%.
“There is a strong relationship between a business’s financial health and its satisfaction with its bank,” said Paul McAdam, senior director of banking and payments intelligence at J.D. Power. “Financially healthy small businesses have higher satisfaction - a gap of 126 points- than those that are financially vulnerable or constrained by cash or capital. Satisfaction levels rise when banks deliver advice and services that help businesses meet their spending and saving goals, manage their budget and debt and make better financial decisions,” he says.
Some key takeaways from the survey:
- Digital-first companies are experiencing notably higher satisfaction. Among small businesses in e-commerce, the satisfaction score sits at 698, compared with 624 for those in other sectors.
- Even though 44% of e-commerce firms said they had an issue with their bank (vs. 40% for non-e-commerce), 31% of them managed to resolve that issue on the same day—versus 25% for other sectors.
- Seventy-one percent of e-commerce businesses reported receiving financial guidance from their bank over the past year, compared to 53% of other small-business respondents. Among all small businesses, 93% said that advice affected their business practices.
- Proactive outreach, transparency about fees, and smooth problem resolution were all identified as leading drivers of higher satisfaction.
The study surveyed 2,469 small-business owners or financial decision-makers who hold business banking services and was conducted between June and August 2025.
