The growing disconnect between small businesses and their bank has been further emphasized today with the news that more than half of small business owners have ignored advice from their ‘mainstream bank’ in the past year.
The figure comes from new research issued by Amicus Commercial Finance, which also found that four-in-ten of SME owners do not rate the level of service they receive from their mainstream bank as ‘good’. Part of the problem, the research suggests, is the lack of sufficient human interaction from banks, with branch closures and increased automation of services being blamed for the disconnect.
The Amicus research shows that the most common complaints from SME owners when it comes to dealing with their bank include having to go through call centre – with many business owners complaing that the process is time consuming, frustrating and complicated.
‘A growing divide’
John Wilde, Managing Director of Amicus Commercial Finance, said “The research shows a worrying trend of business advice from mainstream banks been rejected or taken on board with negative consequences for SMEs. There is a growing divide between the level of business service and the flexibility required by business owners and the advice being offered by mainstream banks. As working capital and cashflow are by their very nature dynamic, most traditional mainstream systems have failed to keep pace over the last few years.”