Mid-Market Businesses Indicate They Will Switch Banks Due to Poor Service
This entry was posted on 11/29/2007 1:08 PM and is filed under Customer Satisfaction,Management.
NEW YORK, Nov. 28, 2007 /PRNewswire/ — In the face of globalization,
tougher accounting controls and other changes, medium-sized businesses
are turning to more sophisticated banking solutions — and they're
likely to consolidate their business at fewer banks in the process,
according to a new report from TNS and Treasury Strategies.
This report
kicks off a series of Thought Leader Reports that aim to help banks
better understand and serve their small to middle market business
clients (those businesses with annual revenue of $250M or less).
Highlights from the Thought Leader Reports, "The Last Bank Standing"
and "Strategic Opportunities in Small Business Banking," were released
today by TNS, in
conjunction with treasury consulting firm Treasury Strategies, Inc.
These reports include survey data from SME (small and medium
enterprise) business owners on important strategic concerns of banks
such as customer acquisition, credit and borrowing, customer
satisfaction and retention, channel usage including Internet and mobile
banking.
Among the key survey findings and implications are the following:
— 66 percent of mid-market customers indicate that they will not hesitate to switch banks due to poor service Clients are demanding high-quality service across all channels. As the number of channels is expanding, banks will need to coordinate service levels and standards across these channels to be successful.
— 86 percent of the middle market segment is using online banking up from 76 percent the previous year. Mid-sized firms are becoming more self-service oriented by greater adoption of web services. Banks need to ensure that their web platforms are robust, competitive and deliver a high standard of customer service. Value added services like online training, education and live chat with customer services representatives should be considered.
— 14 percent of $5M - $10M businesses are currently using mobile banking. Among those that do not currently use mobile banking, 11 percent say they are likely to consider using it in the future. Businesses are on the go, and expect their banking
providers to keep up. Finance and accounting employees are no longer tied to their desks, and need the flexibility to manage
financial activities remotely. The most successful providers will be able to seamlessly integrate mobile services with online and
traditional services; ensuring clients have the same experience however they connect to the bank.
— 44 percent of small businesses indicate "location and convenience" as the most important selection criteria compared with 29 percent in 2006. As small businesses are much more likely to visit local branches for deposits and other services, it is essential that banks provide them with an easy, hassle-free experience.
— The three SME market segments are defined as:
Middle Market — corporations with $10-$250 million in annual sales;
Small Business — corporations with $1-$10 million in annual sales; and
Micro Business — start up companies with up to $1 million in annual sales.
The collaboration between TNS and Treasury Strategies provides banks
with a unique combination of strategic insights from a leading
management consulting firm along with in-depth market research from a
leading research organization.
"TNS and Treasury Strategies have formed a partnership that will
provide the voice of the customer through rich market research,
enhanced by strategic insights and recommendations by the leading
business banking management consultants," said George Ravich, Senior
Vice President of TNS Financial Syndicated Programs.
"Insight in the Thought Leader Reports will allow banks to zero in
on what's most important to their clients and develop a compelling
strategy to maintain and grow their business," said Lindsey Whyte,
Senior Consultant at Treasury Strategies. "By utilizing TNS research,
we are able to provide more in-depth client counsel that directly
responds to customer feedback."
A complimentary copy of the first Thought Leader Report on small business banking can be downloaded at http://tns-us.com/financial/special-offer/.
