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28 Mar 2024
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‘Business Banks need to be more switched on’, says Moneyfacts.co.uk

Lee Tillcock of moneyfacts.co.uk comments on the 2007 findings from the Business Moneyfacts Business Banking mystery shop.

“In our 2007 Mystery Shopper survey, we approached 10 business banks, posing as a micro business looking to switch current account provider. Whilst any survey of this nature can be somewhat subjective, it is important to stress that banks only get one chance to impress. We may have been a new customer won or lost, so creating an excellent impression is vital if you want to stand out from the crowd in what is an extremely competitive market.”

Banks surveyed

Abbey

Alliance & Leicester Commercial Bank

Bank of Scotland

Barclays

Clydesdale/Yorkshire Bank

Co-operative Bank

HSBC

Lloyds TSB

NatWest

Royal Bank of Scotland

The results make interesting reading – see attached table for full results.

Websites

Alliance & Leicester Commercial Bank and HSBC were both slightly ahead of the field, with the former edging ahead due to an excellent Business Advice section.

Telephone

Alliance & Leicester Commercial Bank and HSBC again led the way, with the final positions being reversed and HSBC narrowly taking the plaudits. The fluent manner and professional approach of HSBC, providing information and advice in a concise manner, fostered a rapport and ‘relationship’ unmatched even by A&LCB.

Tillcock continues: “Business banks have always insisted that the Competition Commission et al have got it wrong; that service is the biggest issue - not pricing. What seems to be highlighted by our survey is that the issue of service is indeed important, but not perhaps in the same way as the banks believe. The level of perceived service is decided before a banking relationship begins. So get the initial contact right and the level of new business gained could soar as a result.

“In today’s competitive environment our results highlighted that some providers are clearly more switched on than others.

“Another reason for the SMEs’ apparent lack of willingness or desire to switch is the fact that there are so few introductory offers available to switchers, unlike the market for start-ups.

“It seems that any small business looking for a new bank not only needs to weigh the price on offer against the level of service, but also more surprisingly to identify a bank that wants its account, as not many of the banks surveyed went out of their way fight for our business, which after all was a warm lead.

“The intangible but important benefits that arise from building relationships begin with the first contact. From our mystery shopping experience, it would seem that banks need to beef-up their approach to switching and to offer a more knowledgeable and proactive first contact to potential new customers.

As firms are becoming inclined to shop around for the best deal banks should take note; it’s time to tune in as the switch is on.”

Methodology

We visited each of the banks’ websites, spending no more than 30 minutes on each site, assessing the site’s usability, content, both product based and general business information, and also whether the site provided any additional facilities. We then telephoned a specialist ‘switching account’ centralised number where one could be found on the bank’s website. We assessed the quality of the initial telephone response, general manner and helpfulness, ability to deal with the enquiry, level of information provided as well as the follow up by means of promised literature sent.

NOTES TO EDITORS:

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry. 

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