Business Banking: The ProblemsThe island has a successful and diverse business sector which all contribute to the prosperity of the island. However, they are facing problems with 46% of business respondents having had issues applying for a business loan or credit with rigid decision process and bureaucracy at fault. Excessive due diligence requirements were the cause of 42% respondents struggling with applications for current accounts.
Quotes on business loans/credit facilities:“Local bank managers are no longer decision makers, they are administrators.”
“Always being told that the decision was out of local management hands. Frustration at having to go to a finance company who are always willing to assist. We do not ask the banks for any funds now.”
“Took a long time to get a response.”
“The main challenge has always been in having to explain to new contacts at the bank exactly what our business is all about.”
Quotes on current accounts:“Whilst accepting the need for security and recognising regulations relating to money laundering, it is far too onerous a process to open any bank account currently.”
“Risk averse. Lack of active cash management involvement and new ideas.”
Disproportionate due diligence requirements and lack of commercial insight into proposed activities of the account.”
“Too many damn forms.”
What does this mean?It is an unusual situation when customers are looking for new products and have a desire to buy new products but no-one is interested in providing those products. From Finance For Guernsey’s perspective it is clear that local decision making is key to solving a number of these problems.
“From Finance For Guernsey’s perspective it is clear that local decision making is key to solving a number of these problems.”
Survey Results GUERNSEY CUSTOMERS
402 surveys completed in total
Banking services in Guernsey: opinion statements
High numbers experienced difficulties plus low levels of satisfaction
Personal Banking: The Problems
Personal Banking: Satisfaction levels
Business Banking: The Problems
Business Banking: Satisfaction levels
Fiduciary Banking: The Problems
Fiduciary Banking: Satisfaction levels
What are the problems and why?
What are the solutions?
The next steps