More than a third of Midland businesses look to switch bank

MORE than a third (34%) of West Midlands businesses are considering switching their banking provider in the next two to three years due to poor levels of service and general dissatisfaction.

New offers and better rates are the key incentives, according to new research commissioned by Yorkshire Bank.

The bank surveyed more than 1,000 businesses as part of the research and discovered that more than a third (38%) had switched banks at some point. Of those to have switched, 20% blamed poor service with others (13%) citing the attraction of better terms and conditions.

Despite being dissatisfied, nearly a fifth of firms in the region (18%) said the hassle of changing accounts would deter them from switching bank.

Stephen Cronin, managing partner for Yorkshire Bank’s Financial Solutions Centre in Birmingham, said: “Businesses in the West Midlands 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.

“Understanding what West Midlands businesses need to help them grow and exploit emerging opportunities over the next 12-18 months will cover much more than just financial support. It is about really getting under the skin of businesses – understanding what makes them tick and what challenges they face.”

Yorkshire Bank wants to try and lure as many of the discontented businesses as it can and has introduced a number of initiatives in recent months to try and capture those looking to change.

As part of a two-year lending pledge to business and mortgage customers, it aims to deliver £10bn of new lending by October next year.

The research commissioned by Yorkshire Bank was conducted by ORB – Opinion Research Business. The telephone survey questioned 1,010 business owners/senior executives throughout the UK. All the businesses had a turnover of between £1m– £25m.