Small firms welcome banks' proposals

19 June 2006:

Moves to bring banks back to the UK’s high streets have been welcomed by the Forum of Private Business (FPB). The high street bank has become a thing of the past in many towns, the Forum claimed, with businesses seeing what was an essential local service turned into theme pubs or discount clothing stores.

All that could change, however, as major banks including Halifax, HSBC and Abbey National have announced that they are to spend hundreds of millions of pounds opening at least 50 new branches each. The FPB’s banking expert, Andy Mowlah, described the proposals as great news for the small business owner, but warned that they would have to wait to see if the banks really did increase the amount of local branches after years of sustained closure. Mr Mowlah added that the FPB has received thousands of comments from members who have suffered due to bank closures.

The FPB’s biennial banking survey, which rates performance by the banks and includes over 5000 responses from smaller businesses, highlights the need for more local branches. Business owners place reliability, friendly staff, dealing with one person, convenient location and competitiveness of interest rates in the top 10 of importance when dealing with banks. The smaller business owner needs a consistent, reliable, relationship with their bank and the FPB hopes that the proposed increase in local branches will enable this to happen. The next FPB Bank Report will appear in October.

For further information:

Contact: Forum of Private Business (FPB)
Web: [www.fsb.org.uk]