Quality of banking service gets thumbs down
A survey issued today by the Irish Small & Medium Enterprises Association, (ISME) confirms that, while there has been an improvement in satisfaction ratings in the banks by small businesses, the level of service continues to deteriorate.
The survey also highlights that SMEs are still concerned about the level of bank charges and fees that they are forced to pay, indicating that a lack of competition still exists in the Irish banking sector.
The survey of 1,500 ISME members prompted a response from 480 companies and provides a comparison with similar surveys undertaken in 2006 and 2003. The main findings confirm:
:: A massive 92% (91% - 2003) of the market is accounted for by just three banks, with Bank of Ireland and AIB accounting for 76%, confirming a continued lack of competition in the marketplace.
:: Overall the banks received a satisfaction rating of 67%. Of the main banks Ulster Bank scored 70%, AIB scored 68% and Bank of Ireland scored 65%.
:: Over one fifth of businesses (22%) outlined that banking services have deteriorated.
::51% of companies confirmed they paid over €500 in bank charges in the previous financial year
:: 60% of companies have queried their bank on charges/interest rates, with 43% of these receiving unsatisfactory responses.
:: The banks continue to introduce bank charges on an ongoing basis with over one-fifth of companies (22%) being impacted by new charges in the last 12 months.
:: A quarter of companies (25%) have had their accounts debited without their permission.
:: Almost one-sixth (17%) of companies who had a bank review had their facilities reduced.
