Friday, July 3, 2020

Slow pandemic support sees businesses plan to scrap banking provider

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 In fact, many banks are being forced to run a skeleton crew of remote workers, and a number are still operating outdated legacy IT systems, which are unable to cope with the influx in demand for banking services,” said Wayne Johnson, CEO of Encompass Corporation.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.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.






Latest news

Four East Midlands restaurants to close as Casual Dining Group enters administration

Casual Dining Group (CDG) the operator of restaurant brands including Las Iguanas, Bella Italia and Café Rouge, has appointed Clare Kennedy, Peter Saville, Daniel...

Major mixed use scheme given the green light in Woodville

Plans for a major new mixed use scheme on land north of Occupation Lane in Woodville, near Swadlincote, have been approved by South Derbyshire...

D2N2 LEP allocated £44.4m in government “New Deal” plan

Derby, Derbyshire, Nottingham and Nottinghamshire has received a £44.4 million cash boost from government to fund ‘shovel-ready’ projects to help the local economy and...

Chesterfield manufacturer significantly increases workforce as post lockdown order book booms

A booming post lockdown order book has prompted a Chesterfield manufacturer to create new full-time jobs, significantly increasing its workforce by more than 20...

Chesterfield caravan company receives finance facility to navigate Coronavirus

A Chesterfield retailer of new and used touring caravans has secured a finance facility from HSBC UK to support the business as it navigates...

Related news

Record year continues at GIC

A Lincolnshire packaging machinery manufacturer’s strong start to 2020 has continued this month, with the company sending a record number of machines out of...

Four East Midlands restaurants to close as Casual Dining Group enters administration

Casual Dining Group (CDG) the operator of restaurant brands including Las Iguanas, Bella Italia and Café Rouge, has appointed Clare Kennedy, Peter Saville, Daniel...

Major mixed use scheme given the green light in Woodville

Plans for a major new mixed use scheme on land north of Occupation Lane in Woodville, near Swadlincote, have been approved by South Derbyshire...

D2N2 LEP allocated £44.4m in government “New Deal” plan

Derby, Derbyshire, Nottingham and Nottinghamshire has received a £44.4 million cash boost from government to fund ‘shovel-ready’ projects to help the local economy and...