Friday, 5 November 2010

Switching SME banking relationships is easy - the OFT report says so!

Yesterday the OFT published its report on the barriers to entry and exit in Retail Banking. For those who haven't read the report in detail, some interesting responses from SMEs surveyed that little media attention has focussed on:

76% of SMEs who had switched thought it was very easy or easy to switch suupliers
4% of SMEs who had switched thought it was difficult
49% of SMEs  who had switched said it cost less than £100 and a further 21% didn't know how much it cost
49.6% of SMEs use more than one bank for their businesses
Of those who put their business with only one bank 78% had either not even thought about it or thought it was too much hassle to have a relationship with more than one bank
57% of SMEs are not disatissfied with the service they receive from their banks.

What the banks should take from this is that there is no room for complacency, SMEs can and will switch and there is a long way to go to improve satisfaction with the service provided.

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