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2026 East Tennessee Small Business Banking Survey
SouthEast Bank invited small businesses in East Tennessee to share what they value most in a banking partner, and the responses revealed meaningful insight into what helps and hinders their day-to-day banking experiences.
Read on to explore findings from our 2026 East Tennessee Small Business Survey.
Key Takeaways
With perspectives from customers across a number of financial institutions, it was clear that what small businesses need most is responsive, personalized service:
While rates and digital tools matter, they are most meaningful when delivered through established, trusted relationships, and banking decisions need to be made close to the communities that businesses call home.
Disappointment comes with a lack of personal attention, slow response times, high or unclear fees and limited flexibility at the local level.
These pain points appear consistently across bank types, including national, regional and credit institutions.
Understanding What Small Businesses Value in Banking
Across all respondents, the top “most valued” attributes were personalized service and local decision-making, ahead of competitive rates and digital tools, a contrast that suggests that loyalty is most influenced by how service is delivered, not pricing or technology alone.
Personalized Service
Approximately 94% of respondents say personalized service is important, and 30.7% chose personalized service as their most valued banking attribute.
Competitive Rates
20.5% of respondents chose competitive rates as their most valued banking attribute, and 74% say rates would influence switching.
Local Decision-Making
Approximately 93% of respondents say local loan decisions are important, and 28.4% chose local decision-making as their most valued banking attribute.
Digital Banking Tools
17% of respondents chose digital banking tools as their most valued banking attribute, and 41% say technology would influence switching.
FURTHER SURVEY INSIGHTS
Small Business Customer Pain Points
Small businesses want to be treated as they treat their customers – with a sense of urgency and a strong commitment to service. For banks, that means working to provide fewer delays or disruptions, faster approvals, better support at critical moments and meaningful effort to provide counsel and solutions.
The most commonly cited frustrations among customers of other financial institutions include lack of personal attention, slow response times, high or unclear fees, limited flexibility and the absence of local decision-makers. These pain points appear consistently across bank types, including national, regional and credit institutions.
Frustrations Small Business Customers Identified in Banking
Service and speed are the core expectations small businesses have for their banking partners. Breakdowns in the relationship happen when cost feels high, service is slow or solutions feel rigid.
Rates & Value
35% rank fees as their top pain point. Cost sensitivity is the top trigger of friction and switching behavior.
Personalized Service
20% rank lack of attention as their top frustration, and 55% would switch for better service.
Local Decision-Making
31% would switch banks for local decision-making, with 15% ranking its absence as their #1 frustration.
Responsiveness & Flexibility
18% say their bank is only “somewhat responsive,” and slow response is a top-tier frustration. 13% report clear inflexibility regarding lending and problem-solving.
BUSINESS BANKING LOYALTY
How Likely Are Businesses to Recommend Their Current Institution?
Survey responses show a notable advocacy gap between SouthEast Bank customers and small businesses banking elsewhere: More than 93% of SouthEast Bank customers indicated they are likely to recommend their bank, compared to 78% of customers at other financial institutions.
Small business banking satisfaction is in the details. When multiple institutions offer similar banking products, what sets SouthEast Bank apart, according to our small business customers, includes key drivers of satisfaction with:
Personalized service
Named banker relationship
Quick response times
Decisions made locally
What this means for our customers is faster approvals, fewer delays and disruptions and better support at critical moments. This level of service results in customers consistently citing feeling valued and supported by SouthEast Bank.
Explore What SouthEast Bank Customers Shared About Their Experience
They care about community and giving their customers the personal touch. Great folks!
– 2026 East Tennessee Small Business Banking Survey Respondent
They remember you by name when you walk in the door.
– 2026 East Tennessee Small Business Banking Survey Respondent
SouthEast Bank has been very good for me. I brag all the time about how superior their online banking is with the ability to edit your transactions and make it serve like a check register. Saves me a ton of time and is so convenient for filing taxes, etc.
– 2026 East Tennessee Small Business Banking Survey Respondent
I really like that everything I need is handled locally.
– 2026 East Tennessee Small Business Banking Survey Respondent
“SouthEast Bank is always there to help in any way that they can. They make you feel like the most important customer every time you go in.”
– 2026 East Tennessee Small Business Banking Survey Respondent
SURVEY CONCLUSIONS AND DATA COLLECTION
Small Businesses Prefer People-First Banking
Small businesses know the impact of good customer service and keeping it local. So, it may be no surprise that those are the attributes they value most in a business partner – including their bank. While technology and pricing are table stakes in selecting a financial partner or switching banks, loyalty from small businesses is built on human and relationship-driven dimensions.
And, when comparing the data head-to-head, the presence – or absence – of meaningful relationships and local empowerment creates the largest satisfaction gap between SouthEast Bank customers and non-customers.
This small business banking study was conducted via digital survey, emailed to qualified contacts in Q1 of 2026. Respondents were 196 representatives of small businesses across East Tennessee. Approximately 55% of respondents bank with financial institutions, banks and/or credit unions other than SouthEast Bank, and about 45% represent SouthEast Bank customers.All respondents were offered financial incentive for participation.
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