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41% of businesses plan to switch banks because of poor performance during health crisis

Four in 10 businesses are planning to change their banking provider due to the slow support that has been offered during the Covid-19 outbreak, according to research commissioned by RegTech outfit Encompass Corporation

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41% of businesses plan to switch banks because of poor performance during health crisis

Editorial

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The data, which was obtained via a survey of 200 business decision makers in large and medium sized companies, and conducted by independent polling company Censuswide, found that 41% of companies were looking to make a switch due to poor services during the crisis.

Forty-two percent of those surveyed admitted to waiting over two weeks for a business loan application from their current banking provider, while 46% have noticed significant delays in their bank’s onboarding process since the start of lockdown.

Almost half of business decision makers also revealed that their bank has yet to directly offer financial support during the health crisis, and 40% felt that their bank’s online digital services and support around Covid-19 has been poor.

The dealys can be particularly frustrating, with 45% of companies polled planning to make redundancies due to a lack of revenue in the coming months.

Wayne Johnson, CEO, Encompass Corporation comments: “The Covid-19 crisis has had a big impact on all sectors of British industry, especially financial services. In fact, many banks are being forced to run a skeleton crew of remote workers, and a number are still operating outdated legacy IT systems, which are unable to cope with the influx in demand for banking services."

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Comments: (3)

Alessio Balduini

Alessio Balduini CEO at Crif Business Solutions

Excellent feedback from this survey which is consistent with what we are hearing from hundreds of Credit Passport users. Good news is that Open Banking technology (UK is top in the world) will help financial institutions to improve margin and efficiency, supporting SMEs during C-19.

Melvin Haskins

Melvin Haskins Managing Director at Haston International Limited

I hope that the same survey is carried out in 12 months time, contacting the same players, to confirm the number of companies that actually change banks, compared to the number that say they will. History says that few will actually change.

Mattia Bruzzi

Mattia Bruzzi EMEA Banking Sales Director at Earnix

Very intersting survey.

Last week I actually wrote a post "Customers, now more than ever, need Banks: are the Banks really up for it?" ( https://www.linkedin.com/pulse/customers-now-more-than-ever-need-banks-really-up-mattia-bruzzi/ ) to stree the importance, actually the urgence, of banks to proactively and seriously engage with their customers as they are pretty much all far from that.

I recentely followed up with the post "Come on Banks, let's give it a go!" ( https://www.linkedin.com/pulse/come-banks-lets-give-go-mattia-bruzzi/?trackingId=B12dOioATbScpApAx6XrZA%3D%3D ) to try to analyze the reason why banks still struggle so much to provide the service the customers deserve and, most certainly, banks - by really embracing innovation and wisely levare technology - should be able to offer.

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