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.

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Meet Anne Marie Waters - the Ukip politician too extreme for Nigel Farage

In January 2016, Waters launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). 

There are few people in British political life who can be attacked from the left by Nigel Farage. Yet that is where Anne Marie Waters has found herself. And by the end of September she could well be the new leader of Ukip, a party almost synonymous with its beer-swilling, chain-smoking former leader.

Waters’s political journey is a curious one. She started out on the political left, but like Oswald Mosley before her, has since veered dramatically to the right. That, however, is where the similarities end. Waters is Irish, agnostic, a lesbian and a self-proclaimed feminist.

But it is her politics – rather than who she is – that have caused a stir among Ukip’s old guard. Former leader Paul Nuttall has said that her views make him “uncomfortable” while Farage has claimed Ukip is “finished” if, under her leadership, it becomes an anti-Islam party.

In her rhetoric, Waters echoes groups such as the English Defence League (EDL) and Britain First. She has called Islam “evil” and her leadership manifesto claims that the religion has turned Britain into a “fearful and censorious society”. Waters wants the banning of the burqa, the closure of all sharia councils and a temporary freeze on all immigration.

She started life in Dublin before moving to Germany in her teens to work as an au pair. Waters also lived in the Netherlands before returning to Britain to study journalism at Nottingham Trent University, graduating in 2003. She subsequently gained a second degree in law. It was then, she says, that she first learnt about Islam, which she claims treats women “like absolute dirt”. Now 39, Waters is a full-time campaigner who lives in Essex with her two dogs and her partner who is an accountant.

Waters’s first spell of serious activism was with the campaign group One Law for All, a secularist organisation fronted by the Iranian feminist and human rights activist Maryam Namazie. Waters resigned in November 2013 after four years with the organisation. According to Namazie, Waters left due to political disagreements over whether the group should collaborate with members of far-right groups.

In April 2014, Waters founded Sharia Watch UK and, in January 2016, she launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). The group was established as a British chapter of the German-based organisation and was set up to counter what it called the “Islamisation of our countries”. By the summer of 2016, it had petered out.

Waters twice stood unsuccessfully to become a Labour parliamentary candidate. Today, she says she could not back Labour due to its “betrayal of women” and “betrayal of the country” over Islam. After joining Ukip in 2014, she first ran for political office in the Lambeth council election, where she finished in ninth place. At the 2015 general election, Waters stood as the party’s candidate in Lewisham East, finishing third with 9.1 per cent of the vote. She was chosen to stand again in the 2016 London Assembly elections but was deselected after her role in Pegida UK became public. Waters was also prevented from standing in Lewisham East at the 2017 general election after Ukip’s then-leader Nuttall publicly intervened.

The current favourite of the 11 candidates standing to succeed Nuttall is deputy leader Peter Whittle, with Waters in second. Some had hoped the party’s top brass would ban her from standing but last week its national executive approved her campaign.

Due to an expected low turnout, the leadership contest is unpredictable. Last November, Nuttall was elected with just 9,622 votes. More than 1,000 new members reportedly joined Ukip in a two-week period earlier this year, prompting fears of far-right entryism.

Mike Hookem MEP has resigned as Ukip’s deputy whip over Waters’ candidacy, saying he would not “turn a blind eye” to extremism. By contrast, chief whip, MEP Stuart Agnew, is a supporter and has likened her to Joan of Arc. Waters is also working closely on her campaign with Jack Buckby, a former BNP activist and one of the few candidates to run against Labour in the by-election for Jo Cox’s former seat of Batley and Spen. Robinson is another backer.

Peculiarly for someone running to be the leader of a party, Waters does not appear to relish public attention. “I’m not a limelight person,” she recently told the Times. “I don’t like being phoned all the time.”

The journalist Jamie Bartlett, who was invited to the initial launch of Pegida UK in Luton in 2015, said of Waters: “She failed to remember the date of the demo. Her head lolled, her words were slurred, and she appeared to almost fall asleep while Tommy [Robinson] was speaking. After 10 minutes it all ground to an uneasy halt.”

In an age when authenticity is everything, it would be a mistake to underestimate yet another unconventional politician. But perhaps British Muslims shouldn’t panic about Anne Marie Waters just yet.

James Bloodworth is editor of Left Foot Forward

This article first appeared in the 17 August 2017 issue of the New Statesman, Trump goes nuclear