Credit unions better for small and mid-sized businesses

Credit unions outperformed big banks in serving small and mid-sized businesses: CFIB survey

TORONTO/CNW/ – Credit Union Central of Canada (Canadian Central), the national trade association representing the Canadian credit union system, commented recently on a research report issued by Canadian Federation of Independent Business (CFIB) – Battle of the Banks. The survey found credit unions outperformed all banks in serving small- and medium-sized enterprises (SMEs), with a top-ranking overall score of 7.4 out of 10. SMEs also rated credit unions higher than banks in the individual categories of financing, fees and account manager.

“We are thrilled, but not surprised, that Canadian credit unions were viewed so positively by small businesses,” said David Phillips, president and CEO, Credit Union Central of Canada. “Credit unions are advocates for small business members, with deep roots in the communities they serve and a commitment to helping local businesses prosper. Their success is our success.”

Other key findings for credit unions include:

Micro Businesses (one to five employees): Very small businesses rated credit unions higher than banks overall, with a total score of 7.2 out of 10. Micro businesses also gave credit unions top marks in each area of interest, including financing, fees, account manager and service.

Small Businesses (five to 49 employees): Among small businesses, credit unions achieved an overall score of 7.4 out of 10, and took top honours in the areas of financing, fees and account manager.

Mid-Sized Businesses (50 – 499 employees): Medium-sized businesses gave top marks to credit unions, with an overall score of 8.5 out of 10, with credit unions also leading in the individual areas of financing and fees.

 

“The results are a testament to the wide appeal of credit unions among small businesses of all sizes,” said Phillips. “Canadian small businesses understand that credit unions care about what they care about – a willingness to lend, reasonable fees that reflect service level and quality, accessible account managers who understand their financial needs, and personal service that reflects the human touch.”