‘Hassle factor’ prevents businesses switching banks

Pound coins. Money. Cash pounds cuirrency
Pound coins. Money. Cash pounds cuirrency
Share this article

A LARGE number of businesses in the east of England are close to voting with their feet when it comes to their bank - so says a bank!

Clydesdale Bank has commissioned research that suggests about one in three businesses in the region are considering dumping their current bankers over the next two to three years.

Andrew Franklin, managing partner at Clydesdale Bank’s Financial Solutions centre in Milton Keynes, said: “Businesses have been incredibly loyal to their banks but this research suggests a growing number of companies are considering switching.

“We believe that many businesses will use next year as an opportunity to look at whether their current bank truly fits their needs and future growth potential. If that is found wanting then it should be no surprise when businesses start to vote with their feet and switch bank in the next couple of years.”

Of companies in the region that have switched bank, poor service and better terms were deemed to be th main reasons for moving. But one in five businesses in the region say they the ‘hassle factor’ is the main barrier to them choosing a different bank.

Clydesdale Bank says it remains on track to deliver £10 billion of new lending by October next year.

The bank has introduced an Investing for Growth initiative which it says offers a dedicated planning service and a more flexible approach to lending.