41% of businesses are planning to change their banking provider due to the slow support that has been offered during the COVID-19 outbreak.
This is according to official research commissioned by Encompass Corporation, the Know Your Customer (KYC) RegTech software provider, which found that four in ten companies were looking to make a switch due to poor services during the crisis.
The data, which was obtained via a survey of 200 business decision makers in large and medium sized companies, and conducted by independent polling company Censuswide, also revealed that 42% admitted to waiting over two weeks for a business loan application from their current banking provider.
Additionally, 46 % have noticed significant delays in their bank’s onboarding process since the start of lockdown.
Almost half (49%) of business decision makers also revealed that their bank has yet to directly offer financial support during the COVID-19 crisis, and 40% agreed that their bank’s online digital services and support around COVID-19 has been poor.
The impact of slow onboarding, application and compliance processes on companies can be severe, and Encompass found that 45% of companies are planning to make redundancies due to a lack of revenue in the coming months.
“The COVID-19 crisis has had a big impact on all sectors of British industry, especially financial services. In fact, many banks are being forced to run a skeleton crew of remote workers, and a number are still operating outdated legacy IT systems, which are unable to cope with the influx in demand for banking services,” said Wayne Johnson, CEO of Encompass Corporation.
“This move from on-premises to remote working has underlined the value of Software as a Service (SaaS) solutions.
“Standard, out of the box solutions can be up and running in a matter of days and be easily accessed remotely, via computers or mobile devices, without having to contend with firewall issues – something that has posed a significant challenge to many organisations.
“These factors could make all the difference when migrating employees to our ‘new normal’ and ensuring they have the data and systems they need to work effectively at their fingertips.
“Moving forward, finance professionals and institutions must continue to implement the necessary regulatory and automation technology in order to ease their workload and speed-up processes for clients and consumers.”