Just what treasury products do middle-ranked corporates downunder want?
(Australia) - The first round in an ongoing and unique analysis of treasury and financial market product use by sub-A$100M turnover companies in Australia that is about to be released has highlighted important market dynamics for banks and service providers wanting to build business in this profitable segment.
Based on interviews with 653 enterprises (10 percent of the total segment), for mid-scale corporates using banking products beyond core transaction services, the level of importance they attach to such products is high - their expectations are also high. The top three ranked products in terms of customer importance are:
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On Call Accounts
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Term Cash Deposits
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Overdraft Facilities
These are not necessarily surprising in that the assault on this segment with more sophisticated product offerings is only just getting underway and only around one third of these mid-market customers have experienced an unsolicited approach for all or part of their business in the last six months. The three least importantly ranked products for those customers currently engaging them are:
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Floating Rate Notes (Investments)
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Foreign Currency Term Loans
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Commercial Bills (Debt)
It is notable, however, that every one of the 22 treasury and financial markets products covered in this research is ranked at well above average importance by their users. Once engaged these products become crucial to the customer.
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And What About Service Issues in Relationships with their Bankers?
Although at a different scale to the relationship management task at the top end of town, the question of customer expectations for mid-corporates in Australia is critically important. Banked by fewer multiple players and looking for more turnkey or all-product service solutions than their large counterparts, relationship management may well be even more important for mid-corporates.
All 13 relationship service factors researched have been rated as well above average in importance to customers, with the three most important being identified as:
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Quality of (banks') People
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Loyalty to the Relationship
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Understanding (customer's) Business Needs
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For a full outline of results including bank-by-bank customer satisfaction performance and detailed market share and share of wallet analyses, contact the Report's authors:
East & Partners Pty Ltd
Tel: 61-2-9004 7855
Fax: 61-2-9004 7070
sales@eastandpartners.com
www.eastandpartners.com