Banks are still failing SMEs according to new survey

The relationship between small corporations and banks has been the subject of a new survey which revealed that the majority of investors provide little support when businesses themselves find that they are in financial difficulty, especially if those firms fail or sought to restart in a different direction following such failure.

This is what the Federation of Small Businesses (FSB) and the Centre for SME Development found at the Ulster Business School. Both groups announced the study findings which were authored by Professor Mark Durkin, Dr Aodheen McCartan and Professor Pauric McGowan, the researchers who studied these things.

The FSB has created a number of policies in order to answer these issues as highlighted in the study. Finance Minister Sammy Wilson has been made aware of the findings as well. The data shows that almost two thirds of respondents, or 61%, said they had the intention to switch bank provider in the past 36 months.

However, customers with relationship-managed links were more likely to think about switching bank, and 73% of early SMEs, those in operation for less than five years, were in the same boat, compared with 65% of established SMEs.

It seems that early stage SMEs allotted a lower importance to almost every service and relationship that their bank provides than established SMEs, mostly due to internet banking services. Price for these services along with extra charges are key causes of dissatisfaction and bring ongoing problems. Bank managers are seen as important parts that could help resolve these issues.