TORONTO–Canada’s credit unions have been ranked first among financial services providers by companies that belong to the Canadian Federation of Independent Business (CFIB).
The CFIB’s Battle of the Banks report surveyed small businesses about four key areas–financing, fees, account manager experience and service–with the country’s credit unions not only ranked first, but significantly outperforming their competitors.
This is the third CFIB SME report issued since 2010 relating to this study, and credit unions have ranked first for all three.
Credit unions also received the highest rankings when it comes to serving micro businesses (fewer than five employees), small businesses (five to 49 employees), and mid-sized businesses (50 to 499 employees).
Broken down by province, the Report shows that credit unions received first-place scores in British Columbia, Saskatchewan/Manitoba, Ontario and the Atlantic region. They placed second in Alberta and were only 0.1 point below ATB Financial, a provincial institution. Credit unions operate in nine of Canada's provinces only, so are not included in Quebec provincial rankings.
"Credit unions work diligently on building strong relationships with their members. They understand their needs and recognize a void in the market, for lending to these individuals and businesses," said Martha Durdin, president and CEO of the Canadian Credit Union Association. "Credit unions hold 11.5% of the market share in lending to the small and medium sized enterprises sector -- a share on par with some of the big banks -- and are focused on helping SMEs grow."
In 2015, credit union lending activity related to small businesses, grew by 8.3%, from ($145.7 billion, to $157.8 billion).
In terms of both Canadian credit unions and caisses populaires, jointly they are the second largest lender for entrepreneurs and small and medium-sized enterprises through the federal Canada Small Business Financing Program (CSBFP). In 2015, the value of credit unions' and caisses populaires' CSBFP, was $215.9 million -- just over 25% of the market.