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Retailers Unhappy with Banks
Listed under: News
Published: Tuesday, June 15, 2010
Up to one million small businesses are currently dissatisfied with their high street banks, with more than a quarter – 1.2 million – feeling they have not received enough support over the past 12 months, according to a recent report from business support group, the Federation of Small Business (FSB).
The survey also reveals the reasons why many businesses choose to work with their particular banks, seeing 26% cite a good relationship with the managers as one of the most important factors in their decision.
Commenting on the findings, John Walker, national chairman of the FSB, says, “As we move into recovery, it is imperative that the banks start to engage with their customers again. Businesses need to have a good relationship with their bank manager and, as many aren't based locally, this can prove difficult.
“On average, the firms surveyed had held their account at the same bank for 14.7 years,” he continues. “When they first started banking there, the manager would have known their name and the business, and would have been the one to make a decision about the account, not a centrally-based computer, as happens now.”
He adds, “The future health of the economy depends on restoring trust between small firms and the banking system, as turning ideas and innovation into business growth requires a reliable financial partner. Businesses also need to have a right to appeal decisions the high street banks make which they deem unfair.
“The UK must develop alternative forms of finance for small businesses, which will bring greater competition to the banking sector. The FSB believes that this would be best achieved through establishing a Post Bank – utilising the Post Office network. This will provide a local and trusted bank that will allow small firms to grow,” he concludes.
The survey also reveals the reasons why many businesses choose to work with their particular banks, seeing 26% cite a good relationship with the managers as one of the most important factors in their decision.
Commenting on the findings, John Walker, national chairman of the FSB, says, “As we move into recovery, it is imperative that the banks start to engage with their customers again. Businesses need to have a good relationship with their bank manager and, as many aren't based locally, this can prove difficult.
“On average, the firms surveyed had held their account at the same bank for 14.7 years,” he continues. “When they first started banking there, the manager would have known their name and the business, and would have been the one to make a decision about the account, not a centrally-based computer, as happens now.”
He adds, “The future health of the economy depends on restoring trust between small firms and the banking system, as turning ideas and innovation into business growth requires a reliable financial partner. Businesses also need to have a right to appeal decisions the high street banks make which they deem unfair.
“The UK must develop alternative forms of finance for small businesses, which will bring greater competition to the banking sector. The FSB believes that this would be best achieved through establishing a Post Bank – utilising the Post Office network. This will provide a local and trusted bank that will allow small firms to grow,” he concludes.
