(15 October 2012 – Australia) Large institutional clients are increasingly using Word of Mouth and Colleague Referrals as their major source of advice on Trade Finance, according to new research from leading industry consultants East & Partners.While the SME sector, and to a lesser extent the Corporate segment, have always
been heavily dependent on their peer group for advice and guidance it is only
over the last few years that those in the Institutional sector have also begun
to look to their colleagues for direction.
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