Where to go when you don't trust your bank manager

Advice for SMEs.

Whether that business is large, small or part of the squeezed middle, there is little doubt that the fight to find and keep customers - and indeed to make money from them - is harder than it has been for a long time. One area where this is very evident is in the continuing struggle to access funds. Many owners of small and medium-sized businesses are still finding it difficult to get the funding they need from their bank.

The banks counter this criticism with a valid argument that the demand simply isn’t there and many would-be borrowers simply don’t want to take on more risk at a time of great uncertainty. Nevertheless, figures reporting the number of loan applications turned down suggest that the banks are still busy taking risk off their balance sheets and as a result are either refusing to lend at all or setting very high prices on their lending.

While it is clear that the banks are in a difficult position — castigated for being both too reckless and now for being too conservative — there are some very serious long-term implications from the apparent breakdown in relations between small business owners and the banks.

It wasn’t all that long ago when bank managers were the most valued and trusted advisors for those running small businesses. 

But as a recent survey (organised by Hitachi Capital Invoice Finance, which admittedly competes directly against banks to provide an alternative means of finance) shows, trust in bank managers is currently low. Only 21 per cent of SME owners questioned said they would trust advice from their bank manager. While it’s easy to dismiss the report’s findings as a PR exercise, they tally with other polls measuring the general public’s opinion of bankers (notably the Edelman’s Trust Barometer).

Put a group of business owners together in a room to talk about finance and it won’t be long before one or more bemoans the loss of personal banking relationships and the switch to centralised, call-centre style customer service. The days of a local branch manager having a close relationship with local businesses and being able to make appropriate lending decisions (possibly over a round of golf or a G&T) are gone. For some the more strategic overview of a regional risk committee makes more sense in the modern age. But while we all welcome that added professionalism, it’s difficult not to feel that something has been lost in translation. Many business owners would welcome a move back to a more responsive and locally aware banking system.

If business has lost trust in banks, what about other advisors? In his inaugural address in June ICAEW president Mark Spofforth made it clear that rebuilding trust in the accountancy profession was a major objective for his year in office.

“It worries me deeply that the profession I joined isn’t held in the same esteem that it was when I started out as a trainee”, he said, before adding that these concerns are shared by other qualified professionals.

On the evidence of this survey, things are already improving. Hitachi found that 43 per cent of respondents trust the advice they were given by accountants, a far higher score than for any other type of advisor. This is excellent news for a profession that has experienced considerable self-doubt in the wake of the financial crisis.

There is a long way to go, but the importance of such a key customer group being happy with the advice they get from accountants is underlined by further research from the technology company Portal. This piece of research was into the importance consumers place on service. It found that 52 per cent reported they would change supplier as a result of poor service. See a name and shame graphic listing some of the worst offenders.

If trust in the accountancy profession is to be built, then chartered accountants in firms of all size and shape will have to continue to provide excellent standards of service and to provide insightful and meaningful advice, especially to business clients. As Spofforth rightly pointed out in his inauguration address: “Trust has to be earned – and once lost it can take years to rebuild. It is fundamental to a well-run economy and to a properly functioning society. And it is a concern, a worry that only we as a profession can address.

"We need to show that we deserve people’s trust and we need to work hard to earn it.”

This article first appeared in economia.

Photograph: Getty Images

Richard Cree is the Editor of Economia.

Steve Garry
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The footie is back. Three weeks in and what have we learned so far?

Barcleys, boots and big names... the Prem is back.

Another season, another reason for making whoopee cushions and giving them to Spurs fans to cheer them up during the long winter afternoons ahead. What have we learned so far?

Big names are vital. Just ask the manager of the Man United shop. The arrival of Schneiderlin and Schweinsteiger has done wonders for the sale of repro tops and they’ve run out of letters. Benedict Cumberbatch, please join Carlisle United. They’re desperate for some extra income.

Beards are still in. The whole Prem is bristling with them, the skinniest, weediest player convinced he’s Andrea Pirlo. Even my young friend and neighbour Ed Miliband has grown a beard, according to his holiday snaps. Sign him.

Boots Not always had my best specs on, but here and abroad I detect a new form of bootee creeping in – slightly higher on the ankle, not heavy-plated as in the old days but very light, probably made from the bums of newborn babies.

Barclays Still driving me mad. Now it’s screaming from the perimeter boards that it’s “Championing the true Spirit of the Game”. What the hell does that mean? Thank God this is its last season as proud sponsor of the Prem.

Pitches Some groundsmen have clearly been on the weeds. How else can you explain the Stoke pitch suddenly having concentric circles, while Southampton and Portsmouth have acquired tartan stripes? Go easy on the mowers, chaps. Footballers find it hard enough to pass in straight lines.

Strips Have you seen the Everton third kit top? Like a cheap market-stall T-shirt, but the colour, my dears, the colour is gorgeous – it’s Thames green. Yes, the very same we painted our front door back in the Seventies. The whole street copied, then le toot middle classes everywhere.

Scott Spedding Which international team do you think he plays for? I switched on the telly to find it was rugby, heard his name and thought, goodo, must be Scotland, come on, Scotland. Turned out to be the England-France game. Hmm, must be a member of that famous Cumbrian family, the Speddings from Mirehouse, where Tennyson imagined King Arthur’s Excalibur coming out the lake. Blow me, Scott Spedding turns out to be a Frenchman. Though he only acquired French citizenship last year, having been born and bred in South Africa. What’s in a name, eh?

Footballers are just so last season. Wayne Rooney and Harry Kane can’t score. The really good ones won’t come here – all we get is the crocks, the elderly, the bench-warmers, yet still we look to them to be our saviour. Oh my God, let’s hope we sign Falcao, he’s a genius, will make all the difference, so prayed all the Man United fans. Hold on: Chelsea fans. I’ve forgotten now where he went. They seek him here, they seek him there, is he alive or on the stairs, who feckin’ cares?

John Stones of Everton – brilliant season so far, now he is a genius, the solution to all of Chelsea’s problems, the heir to John Terry, captain of England for decades. Once he gets out of short trousers and learns to tie his own laces . . .

Managers are the real interest. So refreshing to have three young British managers in the Prem – Alex Neil at Norwich (34), Eddie Howe at Bournemouth (37) and that old hand at Swansea, Garry Monk, (36). Young Master Howe looks like a ball boy. Or a tea boy.

Mourinho is, of course, the main attraction. He has given us the best start to any of his seasons on this planet. Can you ever take your eyes off him? That handsome hooded look, that sarcastic sneer, the imperious hand in the air – and in his hair – all those languages, he’s so clearly brilliant, and yet, like many clever people, often lacking in common sense. How could he come down so heavily on Eva Carneiro, his Chelsea doctor? Just because you’re losing? Yes, José has been the best fun so far – plus Chelsea’s poor start. God, please don’t let him fall out with Abramovich. José, we need you.

Hunter Davies is a journalist, broadcaster and profilic author perhaps best known for writing about the Beatles. He is an ardent Tottenham fan and writes a regular column on football for the New Statesman.

This article first appeared in the 27 August 2015 issue of the New Statesman, Isis and the new barbarism