Much has been written in recent months about the breakdown in relationships between the big high street banks and small businesses. As we discussed the other day the government’s schemes to improve lending to small businesses do not appear to be working. Meanwhile bank bosses have claimed that the problem is not their unwillingness to lend money but the unwillingness of small businesses to apply for loans.
A new breed of challenger banks are increasingly active in the SME market, trying to to differentiate themselves from the big banks by being more approachable and customer friendly. One of these challenger banks is Aldermore. They have conducted some new research with YouGov on the relationship between SMEs and the big banks which suggests that small businesses do not trust their bank to look after them and that the big banks do not cater to their needs. While Aldermore clearly have a bit of a vested interest in this research, the results are certainly indicative of the wider issues in the small business banking market.