October 4, 2022 | Stamford, CT — About 1 in 4 business owners and executives say they would likely switch banks if their current provider announced a merger or acquisition. 

Small businesses and midsize companies are increasingly leery of bank mergers, which they see as frequently leading to turnover in coverage staff and triggering relationship friction. Among companies whose banks have recently entered into a merger, only a third believe the transaction will lead to improved products and services, and 36% say the merger has already had a negative impact.  

This data from a new Greenwich Market Pulse highlights challenges facing the near-record number of banks engaged in process and systems integration—especially at a time when small businesses and midsize companies are already expressing frustration with the quality of their bank’s service. 

For example, amid increasingly uncertain economic conditions, fewer than a third of small businesses and midsize companies say they have been approached by their bankers to discuss navigating the current economic environment. More than 1 in 5 business owners and executives say their primary contact at their bank has changed in the past six months, and nearly 40% of those respondents say the turnover has had a negative effect on their experience with the bank. 

“As a result of experiences like these, only about half of commercial executives believe their banks are fully committed to their business,” says Chris McDonnell, Head of Digital Benchmarking at Coalition Greenwich. “For some of these executives, a merger could be the last straw.”

Overall, 24% of business owners and executives say they would be “likely” or “very likely” to switch providers if their current bank entered into a merger or acquisition.