Insider Media Limited

More than a third (34 per cent) of West Midlands businesses are considering switching their banking provider in the next two to three years. According to research commissioned by Yorkshire Bank, poor levels of service and dissatisfaction with their current bank are the main motives for switching providers.

The attraction of new offers and better rates are also drivers were moving to an alternative banking provider, the research implied.

Of the businesses surveyed, 38 per cent had switched banks at some time. Of those to have switched, poor service was deemed to be the main reason for moving by one in five, while 13 per cent cited the attraction of better terms and conditions as their deciding factor.

While up to 25 per cent of West Midlands businesses may consider switching bank in the next 12 months, 18 per cent cited the “hassle” factor as the main barrier to switching.

Stephen Cronin, managing partner for Yorkshire Bank’s Financial Solutions Centre in Temple Row, Birmingham, said: “Businesses in the West Midlands have been incredibly loyal to their banks but this research suggests a growing number of companies are considering switching.

“We believe that many businesses will use next year as an opportunity to look at whether their current bank truly fits their needs and future growth potential. If that is found wanting then it should be no surprise when businesses start to vote with their feet and switch bank in the next couple of years.

“Understanding what West Midlands businesses need to help them grow and exploit emerging opportunities over the next 12 to18 months will cover much more than just financial support. It is about really getting under the skin of businesses – understanding what makes them tick and what challenges they face.”