Lenders offering poor digital service risk losing small businesses to challenger banks
Small business owners are calling on high street banks to ramp up their technological innovations or they will switch to digital rivals, new survey findings have found.
A new study, by Unisys Corporation, looking at SME attitudes to banking providers, found that although business owners had high-levels of satisfaction with traditional firms, many said they were “significantly frustrated” with the technology they were offering.
This, small business owners claimed, stops them from accessing the banking services they need to flourish.
The survey found that 83% of SMEs use mobile banking with almost all using online banking. Trust was cited as the main reason for staying with current banking providers.
Whilst businesses said they find technology critical to their business, 39% of SMEs said they regularly experience technological problems that stop them access the banking services they require, with 8% saying this happens “every time”.
Almost half of 47 small firms said they would move to a challenger bank, digital bank or non-banking brand if they did decide to switch, more so than an established banking brand.