More than a million small business owners are dissatisfied with the support offered by their high street bank, a report has claimed.
The research by the Federation of Small Businesses (FSB) found that a quarter of small business owners were unhappy with the service they have received from their bank over the past year.
The level of unhappiness with bank service directly corresponds to the number of different bank managers business owners have to deal with, the report found.
Over a quarter of those who have dealt with two bank managers over the past year expressed dissatisfaction but the figure increased to 52% for those who had dealt with three bank managers and 70% for five.
Some 26% of respondents said a good relationship with their bank manager was one of the most important factors for choosing a bank. Other factors cited were the convenience of the branch location and the competitiveness of the account package, both cited by nearly a third of respondents.
The FSB is now calling for a Post Bank, which utilises the Post Office network, to be established. The lobby group believes this would provide a ‘local and trusted’ option for small business owners as well as increasing competition in the sector.
John Walker, national chairman, Federation of Small Businesses, said:
“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.
Walker said the future economy was dependent on restoring trust between small firms and the banking system.
He added: “The UK must develop alternative forms of finance for small businesses, which will bring greater competition to the banking sector.”
© Crimson Business Ltd. 2010
