Since the collapse of the banking sector last year and the subsequent privatisation of a number of high street banks, much has been made of the importance establishing a good relationship between banks and enterprise.
According to a recent report, conduced by the Forum of Small Business and Enterprise, over forty per cent of small business and company formation owners are unhappy with their relationship with their business bank account manager. This may, in some part, account for the fact that the number of small business who have now chosen to conduct all their businesses banking online, has increased by almost fifty per cent since 2007.
The British Banking Association has said that they have noticed a broad consumer trend of businesses preferring to go online to deal with their business banking rather than picking up the phone to their bank manager or going into their nearest branch to discuss their company’s banking. We speak to Natasha Kilroe, managing director of jewellery chain ‘Moth’;
“The fact is that companies just don’t have the same relationship with their bank manager as they use to. When my father formed our company over thirteen years ago, he would have weekly calls and monthly meetings with his bank manager, to discuss cash flow and future financing opportunities. In the current economic climate that is simply no longer the case.”
“All our banking is conducted online and I have only been into our branch to open an account and make a complaint. I do feel like having a better relationship with my bank manager would be beneficial, but I just don’t think that banks have the resource needed to improve the situation.”