What do the Banks do for you? Help or hindrance?
Discussion
Going back twenty years, I started my company with a high street bank.
For many years this went pretty well - I borrowed a pretty large sum at the time compared to my assets on acceptable terms, had a large overdraft in two currencies (again on acceptable terms), had a manager who took me for coffee and lunch every six months, a local branch etc etc.
Roll forward to today....
The branch has closed. It now operates a basic service from a back room in the local leisure centre. Earlier today I tried to send a CHAPS from this service and was told by the young lady (who was sat on her mobile with no-one else around) that she didn't have the right training to do a CHAPS and that I'd have to go the nearest main branch - about 30 mins drive away.
My manager has moved on and they've reallocated his clients to a regional call centre with no personal point of contact!
They no longer offer any foreign currency products - so more currency loans or overdrafts
They won't provide any overdraft or asset-backed funding unless I accept margins and fees that are at least double previous levels and for amounts less than I could borrow 20 years ago!
Margins on other services, like international trade and FX also doubled in recent years.
On the flip-side - I'm being asked every six months for more and more KYC reviews - the last one just received wants a complete who/where/what/why for virtually all my international transactions, along with increasing intrusive questioning on all fronts, all under the threat of being de-banked!!!
I can't be alone in thinking the banking proposition is no longer working for businesses like mine?
Anyone got some positive experiences?
isleofthorns said:
I can't be alone in thinking the banking proposition is no longer working for businesses like mine?
Anyone got some positive experiences?
I'm not banking in the UK. Still I beliebe that not all banks have similar bad record as yours. Anyone got some positive experiences?
Do you use only one bank, and that bank alone?
I bank with Starling. I started up four years ago and thought I'd build up a head of steam and then switch to a 'proper' bank but have found no need to.
In fairness, my banking needs are quite straight forward. I pay money in and take money out. That's it.
I've had one issue recently where they blocked the account because of unusual activity linked to a social media campaign I'm running for a client. I was travelling at the time so was only made aware of this when I got off the plane. The payment was genuine and I needed this resolved quickly so rather than go through the chat-bot, I called them. Phone was answered almost immediately after the usual recorded message. Person I spoke could be understood and she sorted it there and then.
In fairness, my banking needs are quite straight forward. I pay money in and take money out. That's it.
I've had one issue recently where they blocked the account because of unusual activity linked to a social media campaign I'm running for a client. I was travelling at the time so was only made aware of this when I got off the plane. The payment was genuine and I needed this resolved quickly so rather than go through the chat-bot, I called them. Phone was answered almost immediately after the usual recorded message. Person I spoke could be understood and she sorted it there and then.
wilksy61 said:
Must be Lloyds I have the same intrusive questions as well along with the closure of my accounts if I dont give the correct answers.
HSBC do the same, and have been known to close accounts for non-compliance even when all the questions have been satisfactorily answered. I suspect that high street banks simply don’t make enough profit out of small businesses to be worth making any effort in retaining them. Branches are closing because they rarely see their retail customers in person and having business customers just isn’t enough to change their minds.
Edited by Steve H on Saturday 27th July 09:26
Percy Cushion said:
Banks give you an umbrella when it’s sunny and take it away when it’s raining.
If you bank is operating out of a back room in a leisure centre, it’s clearly time to move banks. There’s plenty of online options which will meet your needs
actually one of the biggest in the UK... they're just closing branches and replacing with this type of set-up!If you bank is operating out of a back room in a leisure centre, it’s clearly time to move banks. There’s plenty of online options which will meet your needs
Unfortunately I need the trade services and FX of a bigger bank, but just getting tired of the lack of offering and increased compliance.
we're meant to be trading with the rest of the world post-brexit, but if you do, you treated with suspicion and subject to increased questioning etc.
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