FSB wants easier bank switching to be put in place

In the constant struggle for small businesses to secure funds from their banks it has been suggested that switching banks might be a good idea.  However, upon further investigation it seems that switching banks for a small business can be as much if not more of a nightmare than being tied to one with reluctant purse strings.

The FSB has suggested that changing some of the current rules might be helpful.  It is looking for faster, cleaner methods of switching that should take no longer than three days.  Right now, a small business enterprise looking to make a banking switch can find itself stuck in financial limbo for as long as 10 business days.

Recent surveys of banks operating on the Internet have found no great relief there either.  The best performer is said to be Santander, with its recent takeovers of several other institutions.

In a poll conducted by eBay, Santander scored highest among banks in the areas of new finance and customer satisfaction.  Only 20 per cent of their customers said that they had problems securing new loans and less than 20 per cent were compelled to rely on overdraft measures.

Compare this to Nat West, who touts itself as Britain’s “most helpful bank” when some 50 per cent of its customers say it has been anything but obliging since the recession.  Add to that the fact that nearly 40 per cent of RBS customers (including Nat West) say that they have been unable to obtain new financing.  Running right on the cheap heels of RBS and Nat West is HSBC who has denied financing to about 40 per cent of its own small business customers.