Four out of five small and medium sized business owners in Canada hold a positive view of the relationship they have with their bank, according to a recent survey commissioned by the Canadian Bankers Association.

“The results of this survey are a testament to the strong relationship and breadth of services banks provide to small business owners across the country,” says Nancy Hughes Anthony, president and CEO of the Canadian Bankers Association.

“Banks in Canada act as trusted advisors as well as partners, providing advice and insight and adapting to meet the unique needs of their small business clients, particularly given the current economic challenges facing businesses today.”

The survey, conducted by the Strategic Counsel in August, polled 200 small and medium sized business owners across a wide range of sectors about their experiences with financial institutions.

It found that access to credit (89%) and having a face-to-face relationship (88%) are the two most important factors contributing to business owners’ overall impression of their financial institution.

Being highly technologically advanced was also identified as an important factor by 78% of respondents.

Of the respondents, 72% have a credit relationship with a financial institution and, of those who do, 87% report that it is a positive relationship.

More than half have had a credit relationship with their main financial institution for more than 10 years, and for a quarter, the relationship has lasted more than 20 years.

The survey also found that 82% of small and medium sized businesses turn to their banks for deposit services, 65% use transaction accounts, and 52% utilize payment facilitation at their banks.

“This research highlights the fact that the relationship between banks and business owners is based on more than just lending,” says Hughes Anthony. “It is a competitive marketplace and banks in Canada are introducing innovative new products and services to meet the needs of SMEs. Forty per cent of our survey respondents have made use of different banking products in the past five years, so clearly they want innovations from their banks, and that’s what they’re getting.”

Two-thirds of business owners said they had never switched financial institutions and 29% have been with the same financial institution for more than 20 years, according to the survey.

Among the one-third that had moved to a new financial institution, half reported that it was easier than they expected, while fewer than one in 10 found switching to be difficult. For those who switched, most did so for improved service and or to get a better deal on credit or other banking services.

Asked to name the channels most commonly used for their day-to-day transactions, 83% identified face-to-face banking, and 54% said online banking was their second most commonly used channel.

Among those using online banking, 57% reported that their use had increased in the past two years and 88% said it had made their business more efficient.

Of the businesses surveyed, almost three-quarters identify a bank as their business’ main financial institution. When establishing a relationship with a financial institution, 31% chose one primarily for its credit services while 62% chose it for non-credit banking services.