Effects of Bank Shutdowns on Small and Medium Enterprises in the UK

According to a recent survey conducted by BusinessComparison, the majority of UK SME leaders believe that there are fewer local banks near their businesses compared to ten years ago. The research aimed to understand how SME owners and senior decision-makers utilize local banks and their concerns regarding bank closures.

The survey revealed that 74% of respondents agreed that there has been a decrease in the number of bank branches near their businesses over the past decade. Additionally, 21% of business leaders reported that it takes between 31 to 45 minutes for them or their staff members to visit a local bank, while 51% indicated a shorter travel time of 11 to 30 minutes.

Philip Brennan, the Founder and MD at BusinessComparison, noted that the findings confirmed a long-standing trend of diminishing bank branches experienced anecdotally by many SME leaders. He also highlighted the strong sense of community that emerged from the survey results, with 88% of business leaders expressing concerns about the impact of bank closures on the local area and other businesses.

The survey shed light on the top worries of business owners regarding bank closures, with 50% concerned about businesses that accept cash payments and 34% worried about the impact on customers. Moreover, the research highlighted that 46% of businesses frequently deposit cash takings at the bank, while 57% have adopted alternative digital payment methods such as PayPal.

Different regions and age groups also exhibited varying behaviors towards local banks. For instance, London-based businesses were more likely to frequently take cash payments and have staff visit the bank daily. On the other hand, the South East region stood out for relying heavily on card payments and rarely collecting change from the bank.

Interestingly, younger business leaders were found to make more frequent in-person visits to the bank compared to their older counterparts. The survey emphasized the importance of local banks for SME owners and their concerns about the disappearance of these branches, highlighting the value placed on these institutions for the local business ecosystem and customer relationships.

The survey, which involved 1,000 UK SME Owners/Senior decision-makers aged 18 and over, was conducted by OnePoll on behalf of BusinessComparison between 16 and 23 February 2024. The full report of the survey findings can be accessed on the BusinessComparison website.

spot_img

More from this stream

Recomended

Neobank Mercury launches personal banking services tailored for startups and entrepreneurs.

Attention, founders: Mercury wants to move into your personal orbit. The neobank designed for startups announced on Wednesday that it will open up its services for personal banking use for the first...

‘OTTera Forms Strategic Partnership with Personalization Tech Company Spideo’

OTTera, a Los Angeles-based company that provides tools for companies to...

“Texas Corporation Acquires Engineering Firm in Southwest Florida”

A Texas engineering and consulting services company has acquired GradyMinor, a civil engineering firm with two Southwest Florida offices and 75 employees. San Antonio-based Pape-Dawson Engineers is......

Celebrate the Earth in April with Brochu Walker

April is officially Earth Month, and what better to mark the month than with the super-chic, conscious luxury brand, Brochu Walker? Here’s the low-down on this...

CEO Discusses Q1 Results: Strong Performance with 16% Increase in Net Income

Article 0 Comments The Travelers Companies, Inc. today reported first quarter net income of $1.123 billion, up 16% compared to $975 million in the prior year quarter. Core income in the current...

Choosing the Best CFO Executive Search Firm for Your Business

If the past year has taught us anything, it’s that leadership matters. This is especially true among companies in the Digital Health, Life Sciences, FinTech, and Software & Technology sectors with the myriad challenges and opportunities presented by the pandemic. Whether you are bolstering your C-suite to support continued success and growth or seeking executives […]

The post Selecting the Right CFO Executive Search Firm for Your Company appeared first on Insights Success.