July/August/September 2020

41% of businesses plan to move banking provider due to slow support during Covid-19

//41% of businesses plan to move banking provider due to slow support during Covid-19

It has been revealed that 42% of business decision-makers have waited over two weeks for a business loan application from their banking provider. Four in 10 businesses are planning to change their banking provider due to the slow support that has been offered during the outbreak. This is according to esearch commissioned by software provider Encompass Corporation, which found that 41% of companies were looking to make a switch due to poor service during the crisis.

The data, which was obtained via a survey of 200 business decision makers in large and medium sized companies, and conducted by independent polling company Censuswide, also revealed that 42% admitted to waiting over two weeks for a business loan application from their current banking provider. Additionally, 46% have noticed significant delays in their bank’s onboarding process since the start of lockdown. 49% also revealed that their bank has yet to directly offer financial support during the crisis, and 40% agreed that their bank’s online digital servicesand support around COVID-19 has been poor.

The impact of slow onboarding, application and compliance processes on companies can be severe, and Encompass found that 45% of companies are planning to make redundancies due to a lack of revenue in the coming months.