Bank contact remains inconsistent
(7 September 2010 – Australia) Over the past couple of years, Micro businesses have reported exceptionally inconsistent levels of proactive contact from their primary banking providers, while the Mid-corporate segment has enjoyed relatively consistent levels of contact, according to East & Partners’ latest Business Banking Sentiment Index (BBSI).
In September 2008, just under 7 percent of Micro businesses reported that their banks had made contact with them in the previous month, yet by December 2009 this number had spiked upwards to 75 percent. But the latest BBSI reveals this number has fallen markedly, with less than half of Micro businesses now reporting proactive contact from their bank.
In stark contrast, those in the Mid-corporate segment have continued to receive consistent levels of contact from their primary banking providers, with, on average, 80 percent of businesses reporting contact from their business bankers over the same two-year span.
"The spike in bank contact for Micro businesses arguably reflects the re-pricing of the banks’ loan books at this time and the subsequent communication that needed to happen with businesses," said East & Partners’ head of market analysis Robert Morgan.
"However, this level of contact has not been maintained for those businesses from the smaller end of town, although their bigger peers continue to enjoy higher levels of contact from their banks," Mr Morgan said.
East & Partners’ Business Banking Sentiment Index is an aggregated rating metric comprising four different measures of customer sentiment – Empathy, Satisfaction, Loyalty and Advocacy.
Each month, East & Partners’ research team conducts telephone interviews with a sample of 750 businesses nationally, providing an in depth study of businesses in the A$1 to 5 million, A$5 to 20 million and A$20 to 100 million turnover segments across Australia.
In stark contrast, those in the Mid-corporate segment have continued to receive consistent levels of contact from their primary banking providers, with, on average, 80 percent of businesses reporting contact from their business bankers over the same two-year span.
"The spike in bank contact for Micro businesses arguably reflects the re-pricing of the banks’ loan books at this time and the subsequent communication that needed to happen with businesses," said East & Partners’ head of market analysis Robert Morgan.
"However, this level of contact has not been maintained for those businesses from the smaller end of town, although their bigger peers continue to enjoy higher levels of contact from their banks," Mr Morgan said.
East & Partners’ Business Banking Sentiment Index is an aggregated rating metric comprising four different measures of customer sentiment – Empathy, Satisfaction, Loyalty and Advocacy.
Each month, East & Partners’ research team conducts telephone interviews with a sample of 750 businesses nationally, providing an in depth study of businesses in the A$1 to 5 million, A$5 to 20 million and A$20 to 100 million turnover segments across Australia.
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