John Fingleton, whom struggled to set up an account for his own little fast, claims main banks are failing to know customers
Big banks are failing little companies, based on the past head of the Office of Fair Trading.
John Fingleton, that newly tried to set up a bank account for his own business, claims banks require a revolutionary shakeup when they are to stimulate, instead of depress, financial activity.
In an post for the Financial Times, he wrote: “We hear which numerous banks are casinos; they are not lending enough to tiny companies, suppressing development. However items are worse than you thought: they could not even learn how to run banks.”
Banks have changed the judgment of staff with blunt, centrally imposed controls, he mentioned. Many even tried to drive extra items about him, even following the scandals surrounding payment security insurance plus interest-rate swaps.
After failed tries to open accounts at HSBC, Barclays plus Santander, Fingleton mentioned he was forced to test small brand-new entrants, including US group Metro Bank, that opens 7 days a week, plus Swedish offshoot Handelsbanken, that leaves the decision-making to branch managers.
These challengers are getting a growing share of hot company inside the UK, helped along by the scandals enveloping many main banks.
Bombarded with headlines regarding bumper bonuses, the mis-selling of payment security insurance, Libor rigging, plus cash laundering for drugs barons, shoppers are increasingly inclined to look beyond the conventional players.
Fingleton states banks “appear to have lost the ability to know customers’ needs” plus their “primitive systems” impose superfluous private-sector red tape.
He added: “Standardising plus centralising decision-making has been counterproductive for banks as well as the wider economy. If my effort to open a easy company account reflects a collective inability to distinguish high-growth companies from bad credit dangers inside their lending decisions, it’s scarcely surprising UK efficiency figures are thus dismal.
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