Business banking a forgotten market
(18 February 2009 – Australia) It appears banks have gone missing in action when it comes to business banking relationships, which is hitting business perception hard, according to East & Partners’ Business Banking Sentiment Index (BBSI).
Over recent years banks have put in extra effort in business banking relationships, including greater contact even with the smallest of business clients. Recent months, however, have seen a shift away from bank initiated contact on a dramatic scale.
In January 2009, only half of all businesses heard from their bank, with customers now having to initiate this contact more often than the bank does.
Subsequently, overall sentiment that businesses feel towards banks fell to 40.5 (on a scale from 10 to a high of 100), the lowest score ever recorded.
The Sentiment score, which is made up of Empathy, Satisfaction, Loyalty and Advocacy, was heavily affected by a significant fall in Advocacy.
The number of businesses that would recommend their banks to colleagues is at an all time low, with businesses even starting to dissuade colleagues from banks.
No bank was spared, with businesses of all banks less happy with their banking relationships compared to how they felt in December last year.
East & Partners’ financial markets analyst, Peter Drennan, said "Banks are losing the relationships that have been developed and are seemingly less focused on engaging their customers directly".
"The lack of bank initiated contact with businesses is a dramatic change from the customer focused banks we have seen recently and is having a significant affect on business relationships", Mr Drennan said.
In January 2009, only half of all businesses heard from their bank, with customers now having to initiate this contact more often than the bank does.
Subsequently, overall sentiment that businesses feel towards banks fell to 40.5 (on a scale from 10 to a high of 100), the lowest score ever recorded.
The Sentiment score, which is made up of Empathy, Satisfaction, Loyalty and Advocacy, was heavily affected by a significant fall in Advocacy.
The number of businesses that would recommend their banks to colleagues is at an all time low, with businesses even starting to dissuade colleagues from banks.
No bank was spared, with businesses of all banks less happy with their banking relationships compared to how they felt in December last year.
East & Partners’ financial markets analyst, Peter Drennan, said "Banks are losing the relationships that have been developed and are seemingly less focused on engaging their customers directly".
"The lack of bank initiated contact with businesses is a dramatic change from the customer focused banks we have seen recently and is having a significant affect on business relationships", Mr Drennan said.
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