Member Article

Banks failing in their role as small business advisors – report

Only one in five small businesses have received pro-active help and advice from their bank, according to a new report by workforce management and SME support specialist Optionis.

The survey of more than 500 small business owners, contractors and freelancers reveals that entrepreneurs see quality advice from their bank as more important than access to finance when it comes to supporting growth.

Indeed, quality advice was second only to online banking services in the list of entrepreneurs’ banking priorities.

Despite this, just 20% of respondents said they had received specialist business advice from their bank, and only 10% said they regularly received useful information about relevant products and services.

The research, carried out as part of Optionis’ launch of its ‘Get on and Grow’ report, focused on how banks could help support growth amongst Britain’s small businesses.

Derek Kelly, managing director at Optionis, said: “Banks need to raise their game when it comes to supporting growth amongst emerging entrepreneurs and small to medium-sized businesses.

“Emerging entrepreneurs and small business owners seem to be having an increasingly remote relationship with their bank.

“This is perhaps unsurprising, given the popularity of online banking amongst this busy section of society, for whom ‘anytime and anywhere’ services have tremendous appeal.

“However, banks need to work harder to find ways to offer advice and support to these customers, particularly on issues such as cash flow that are crucial to businesses surviving the difficult first few months and years.”

It seems business customers agree, rating the current service they receive from their bank at an average of 4.6 out of 10.

Bank charges were also criticised in the report. Fair charges were named as the third highest priority for business customers, and yet the current perception of fairness was scored at an average of just 4.8 out of 10.

Optionis’ ‘Get on and Grow’ report tracks important indicators of growth relating to small enterprises in the UK.

It tracks over 7,000 freelancers, contractors and small businesses each month, looking at financial growth, entrepreneurial mobility, regional trends and gender variations.

The full report can be read here http://www.clearskyaccounting.co.uk/banks-failing-in-their-role-as-small-business-advisors/.

The Optionis group is home to Parasol, the UK’s largest professional employment organisation (PEO), small business services provider ClearSky and cloud-based performance management software Silverline. Optionis has offices in Warrington, Manchester, Poole and London.

For more information, visit www.optionis.co.uk

This was posted in Bdaily's Members' News section by PR Agency One .