The majority (72 per cent) of small businesses in the West
Midlands believe it is important for banks to simplify banking
charges, new research from Lloyds TSB Commercial has revealed.
The survey, which questioned firms in the region with a turnover
of up to £15 million, found that a similar proportion (68 per
cent) said a flat fee will provide simplicity.
The need for simplicity is further evidenced by half (49 per
cent) of respondents not knowing how much it costs to process a
single transaction through their business account and over one
third (34 per cent) not knowing how much they pay each month for
their banking facilities.
Lloyds TSB Commercial has stepped up its support for business
customers by introducing Monthly PricePlan - a range of current
account tariffs offering customers choice and flexibility. The move
is the first of its kind for a UK bank and is the latest in a
series of initiatives designed to make business banking simpler and
clearer.
The new service means that customers can opt to pay a fixed
monthly fee for a package of transactions such as direct debits and
cheque payments, as an alternative to paying for individually
priced items. Customers will be able to choose from a range of five
PricePlans, depending on their business needs and will be able to
switch between plans, to take account of changes in their
businesses, in order to make sure they are getting the best
possible value for money.
Greater simplicity and clarity on business banking charges will
benefit businesses greatly, as 33 per cent said that banking was
the most time consuming administration task. Lloyds TSB Commercial
believes that a more simplified banking charges product will free
up time for its customers to focus on other aspects of its
business.
John Robson, regional director for Lloyds TSB Commercial in
Midlands and North, said: "Small businesses are facing a lot of
uncertainty at the moment, with a volatile economy, rising energy
prices and input costs all taking their toll, so we want to ensure
that the service we provide is as straightforward and supportive as
possible. Business banking is a necessity but it shouldn't distract
from the important task of growing a company and winning new
contracts.
"Our research shows that SMEs are looking for simplicity and
clarity from their banking and we are tackling this issue head on
with the launch of Monthly PricePlan, through our ongoing efforts
to lend, and we have bolstered our well-established SME Charter
with our latest pledge on lending appeals."
To help customers decide whether they are on the right tariff,
they will receive a monthly charges statement that tells them how
much of their plan they have used. Every year, as part of the new
service, customers will also receive a statement outlining their
Monthly PricePlan transactions, and a reminder of the full range of
tariffs available to them.
John added: "Our new Monthly PricePlan will help give customers
control and certainty over their business banking charges, allowing
them to cut down the time they spend managing their day to day
finances, so that they can focus on developing their businesses. We
are committed to ensuring that the service we offer is highly
competitive and that customers have the tariff that best suits
their needs."