SMEs Likely to Switch to Best Bank Deals

SMEs are now more prepared to switch bank accounts to bag the best deals on the market, a new survey claims.

Research by Alliance & Leicester shows nearly half of businesses who have moved their bank account or are considering doing so said they were attracted by better value packages from other banks.

Over a third of those who had or were planning to switch put the decision down to poor customer service at their current bank whilst one in five said their bank did not understand their business.

Only one in five of the 731 businesses surveyed thought their bank offered good value yet 85 per cent banked with the Big Four.

Nearly 60 per cent of businesses thought that internet banking was "very important" whilst a further 36 per cent thought that telephone banking was "important".

Over 40 per cent said that counter access for cash deposits was "very important" but over a third (36 per cent) deemed business consultants as "not important".

Steve Jennings, director of Business Banking at Alliance & Leicester Commercial Bank, said: "SMEs are increasingly waking up to the fact that the traditional banks don’t offer them value for money.

"Our research indicates that service is a key issue. There is now more choice than ever in business banking for SMEs and it is crucial that they have the right services to match their current and future needs."

Earlier research from Alliance & Leicester Commercial Bank found that small businesses could be collectively losing up to £136 million each year by sticking with a current account that does not offer them the best deal.