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Posted by Anonymous (not verified) on June 03, 2014

According to City minister, Andrea Leadsom, the new website revealing how SMEs rate their bank will allow businesses to "vote with their feet".  SMEs can compare banks and see who else is out there if they are unhappy with the service they receive.

The Business Banking Insight (BBI) shows how small businesses rate the performance and services of different lenders. The site, which is supported by the Federation of Small Businesses and the British Chamber of Commerce, went live on Wednesday and is designed to create greater transparency by sharing the experiences of small businesses.

Leadsom, who spoke at the launch of BBI said it would be: "a wake up call for banks themselves to start to improve services and target better products that small businesses want to see".

"This survey commissioned by the chancellor can play a key role in making financing and banking work better for SMEs. There's a fundamental lack of competition in the banking sector and that desperately needs to change. It's the first survey of its kind to look at the performance of the British banking sector as seen by Britain's own businesses, people who own and run their own companies."

Carried out by ICM, the Business Banking Insight is an independent study that has been created to reflect the experiences of small businesses online. Initially 5,000 micro, small and medium businesses were surveyed and the site will be updated with new survey data every six months. The website identifies 74 different lenders, using a five-star rating system and the results can be filtered according to the size of the business, location and so on.

According to the survey, sole traders and businesses with one-to-nine employees gave banks an average satisfaction score of 60% for current accounts.

David Perry, Associate Director, ICM Research said: "It really represents a powerful tool for small and medium size businesses when choosing a bank". 

During a panel discussion at the launch event, Chief Executive of the British Bankers' Association, Anthony Browne said: "All the banks will want to be at the top of the rating system."

National Policy Chairman of the FSB, Mike Cherry said: "It's not easy for a small business or a sole trader to know who is out there. The challenge is getting businesses to know about it and use it as a tool."

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