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Some SMEs 'still unhappy with banking services'

Published On 24 April 2007 at 11:58:25

Some small and medium-sized enterprises (SMEs) are still not happy with the banking services they are provided with, a new report found.
According to the Federation of Small Businesses (FSB), 30 per cent of SMEs said that they were unsatisfied with their bank.

The main complaints from businesses about banking services covered difficulties associated with switching accounts, overcharging and poor levels of customer service.

In general, SMEs felt that banks and their staff lacked the understanding necessary to effectively deal with the needs of companies.

Finally, the FSB discovered that many lenders were still not fulfilling a commitment made to the Competition Commission to offer free banking or pay at least 2.5 per cent interest on business current accounts.

"There is a long way to go before small businesses get the quality of service from their banks that they need and deserve," said Mike Cherry, the FSB's financial affairs chairman.

"There has to be a culture change within the banks so that they understand the needs of their small business customers and can then deliver even better services for them."

The Cruickshank Review of UK banking services found that lenders needed to do more to make SMEs aware of products and services which were available to them.

 

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