(30 May 2010 – Australia) Appetite for business banking products amongst enterprises that nominate one of Australia’s regional banks as their primary provider has not yet recovered post global financial crisis, business banking research firm East & Partners’ latest Advocacy Monitor (TAM) has revealed.Although, since May 2009, customers of the Bank of Queensland and St George
Bank have continually reported declining levels of expected demand for
additional business banking services, they, along with other regionals are still
experiencing higher demand for business banking products than their Big Four
counterparts.
Suncorp is the sole exception amongst the regionals, with expected demand for
additional business banking services in the next two months increasing from 38.9
percent since May 2009 to 40.3 percent.
Paul Dowling, East & Partners’ Principal Analyst said that “There is clearly a
mixed message in these numbers for regional banks active in the business
markets. On the one hand, demand from their small business customers is high
but, on the other, has been consistently reducing, more so than the overall
decline in demand from this segment post GFC.”
“This may well also be an effect of flat to reducing demand for credit from
small business, spilling over into their overall appetite for new business
banking engagement. The traditional relationship and service ethos amongst the
regionals has not completely insulated them from declining demand as small
businesses went into survival mode two years ago”, Mr Dowling added.
About East & Partners’ Business Banking Advocacy Monitor
The East & Partners’ Business Banking Advocacy Monitor is a bi-monthly Index of
business customer advocacy and sentiment towards banks, based on interviews
conducted Australia-wide with a structured sample of +/- 775 companies turning
over A$1 to 100 million per annum, some 4,650 direct interviews with business
banking customers annually. The Index provides a monitor of several key drivers
of customer engagement behaviour with their banks including advocacy,
detraction, empathy, satisfaction, loyalty and mind share.
For more information please contact:
Sian Dowling
Marcomms & Client Services
East & Partners
t: 02 9004 7848
m: 0420 583 553
e: sian.d@eastandpartners.com