Businesses Show Increasing Willingness to Bank Via The Internet

Thursday 23 October 2003 07:07 CET | News

British Businesses are showing a greater willingness to bank via the internet and switch account provider, according to a study by The Institute of Chartered Accountants and Alliance & Leicester Commercial Bank.

Around half of businesses (49%) are more willing than 12 months ago to bank online and over a third (37%) indicated a greater propensity to review banking costs. Furthermore, one in five (21%) say they are more likely than a year ago to switch current account provider and almost the same number (18%) are ready to look outside of the Big Four. The findings come from the Business Confidence Monitor conducted by The Institute of Chartered Accountants in conjunction with Alliance & Leicester Commercial Bank. More than 1,000 Chartered Accountants ? those closest to the financial heart of business - were asked how they felt businesses use of banking services had changed over the last 12 months. They were asked to consider business use of internet banking, banking costs, willingness to change provider and use of non-Big Four banks. Sectoral Findings: More than half (55%) of the accountants working in the Retail & Wholesale sector ? either directly or via their practices ? reported an increase in the use of internet banking and one in two (49%) believe there has been a greater willingness to review banking costs in the last 12 months than previously. Almost a quarter (23%) thought they had become more willing to change current account provider ? and exactly the same proportion are more likely to look outside of the Big Four for their banking. In Manufacturing, a greater willingness to bank online was noted by 45% of respondents. Nearly one in five (19%) is more likely to change current account provider than 12 months ago and 32% have seen a growing focus on banking costs with 15% indicated growing interest in using a non-Big Four bank. Construction & Engineering is on a par with retail & wholesale when it comes to considering competitors to the Big Four ? with 23% increasingly seeing this as an option. A similar number (22%) have seen a greater willingness to change current account provider and nearly twice this number (41%) are more inclined to review banking costs. Greater use of internet banking was reported by 53%. The figure for internet banking in Banking, Finance & Insurance is slightly higher at 54%. While 34% are more likely to review their banking costs than 12 months ago, one in five (21%) are more likely to change provider, with 20% more willing to look at one of the non-Big Four banks. In the Information Technology sector, only 13% are more willing to look outside of the largest four banks. However, 22% are more likely to change provider and 35% are increasingly likely to review costs. Use of internet banking has increased according to 53% of respondents.

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Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
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Banking & Fintech