Women Owned Businesses and Bank Switching: The Role of Customer Service

The number of businesses owned and operated by women is increasing rapidly, and women owned businesses are becoming a powerful economic force. It is estimated that half of the businesses in this country will be owned and operated by women by the year 2,000. This article describes research conducted on women owned small businesses and the nature of their banking relationships. Findings revealed that over 90% of those surveyed used banking products. A surprisingly high percentage of the women surveyed had switched banks. Major reasons for switching included poor customer service, an arrogant and condescending attitude on the part of bank personnel, and errors and mistakes. These results suggest opportunities for bank managers to improve the quality of their interactions with women business owners, a growing segment of the market.