Our Business Banking Manager Steve Skujins is encouraging business to shop around as new research shows loyalty to banks is waning, particularly among small and medium enterprises.
I read some interesting research recently by East and Partners on businesses’ loyalty to their bank.
Out of a total possible loyalty score of 100 (with 10 being the lowest possible score) business overall had a loyalty score to their “home bank” of 26.7, down from 29.5 12 months ago. While loyalty among corporations went up, across all other business segments loyalty went down. Micro businesses are least loyal, with a score of 11.4, only 1.4 points above the lowest possible loyalty score, down from 18.2. SMEs had the biggest drop in loyalty from 24.3 down to 16.3.
Roy Morgan Research shows satisfaction among the business customers of the four big banks in June was 63.5%, unchanged from May. Business customer satisfaction remains well below the level of their personal customers (around 14% points lower) for all the major banks. (In banking, business satisfaction scores are typically lower than customer satisfaction scores. The Greater uses The Financial Research Company to independently measure its customer satisfaction rating. The latest surveys show 90 per cent satisfaction among its business customers while its overall rating is 95.5 per cent.)
Despite smaller enterprises not being loyal to or extremely satisfied with their bank, inertia and a few myths are stopping some businesses from switching.
All banks are not the same, as some people think. Customer owned financial institutions like The Greater have a different model of operation to the banks. Without the pressures of maximising profits and shareholder returns we can focus on providing service, competitive rates and low fees.
All business bankers are not the same either. My colleague Greg Taylor has blogged on the benefits of a good business banker. With experienced business bankers and lower staff turnover, The Greater makes the time to understand your business and is with you for the long haul.
Recent Government reforms are aimed at making it easier for people to switch financial institutions. Long before these reforms, our Business Bankers and Branch Managers already did as much as possible to take the hassle out of switching. There can still be a little bit of effort required but if you are saving money on fees and charges, and getting better service that small amount of effort can be a worthwhile investment.
If you are ready to switch your business banking call us on 1300 651 400 or send us your details and we’ll call you.