Colleagues seen as main source of Trade Finance advice
East’s research shows that this shift among Institutionals began to take place in early 2009. Prior to that, Competitor Banks were seen as the major source of advice with Customers/Suppliers coming in a distant second and Word of Mouth in third place. Even though Institutionals relied heavily on Competitor Banks, advice from peers was still the largest influencing factor across the other two segments.
In the most recent research, Current Relationship Banker was placed in the bottom two for each segment with only 5.5 percent of Institutional respondents, 4 percent Corporate respondents and 0.5 percent of SME respondents nominating it as a main source of advice for their Trade Finance needs.
Main Sources of Advice for Trade Finance Customers – 2012
% of Respondents | |||
Institutional | Corporate | SME | |
Word of Mouth / Colleague Referrals | 74.1 | 91.3 | 93.0 |
Customers / Suppliers | 65.8 | 79.1 | 88.7 |
Competitor Banks | 42.1 | 15.3 | 2.3 |
% Change Since 2009 | |||
Institutional | Corporate | SME | |
Word of Mouth / Colleague Referrals | 45.6 | 19.0 | 9.3 |
Customers / Suppliers | 48.5 | 30.5 | 30.4 |
Competitor Banks | (30.6) | (53.5) | (58.2) |
Source: East & Partners Australian Trade Finance Markets Program
Highlights of the Trade Finance Markets report include:
-
Market Share and Wallet Share
-
Churn Levels and Futures
-
Account Manager Satisfaction Ratings with Customers
-
Service Importance Ratings
- Product Satisfaction Ratings
Lachlan Colquhoun, East & Partners Head of Markets Analysis commented, "It
should be a major concern to the banks that their largest customers, the
institutions, are turning away from them for advice."
"With trade finance increasingly top of mind, it is natural for institutions to
discuss the subject with peers, but the report also highlights some slippage in
trust between banks and their largest clients which relationship managers should
be aware of, and should address," Mr Colquhoun added.
About East & Partners’ Australian Trade Finance Markets report
The program is run every six months across the Top 500 Institutional (annual
turnover A$530 plus million), Corporate (A$20-530 million annual turnover) and
SME (A$5 to 20 million annual turnover) markets with 1,850 directly interviewed
enterprises.
Market analytics include market share, share of wallet, product penetration,
export/import regions, supplier share of mind and life of service relationship
metrics. Customer analytics including bank-by-bank satisfaction performance on
key TF related factors, buying and churn behaviour.
Market Segments:
› Institutional – A$530 million plus
› Corporate – A$20-530 million
› SME – A$1-20 million turnover
For more information or to interview East & Partners, please contact:
Sian Dowling
Marcomms & Client Services
East & Partners
t: 02 9004 7848
m: 0420 583 553
e: sian.d@eastandpartners.com