OFT tell banks they are failing SMEs

According to the OFT (Office of Fair Trading) big banks are not doing enough to help out small business. John Fingleton just attempted to set up a bank account that his own small business could use and stated that his experiences showed him that banks need to be shaken up a bit if they are going to help spur economic growth instead of continue to repress it.

He went on to explain that many banks are working like casinos and are not giving enough back to small businesses in the form of lending, but it turns out that things may be even worse because according to Fingleton it would appear that banks do not even know how to properly run.

One of Fingleton’s main concerns is that banks are not allowing staff to use their own judgment anymore, but instead forcing centrally imposed controls on every decision which is making it harder for anyone with a good idea for a business to get it off the ground.

In addition, Fingleton reported that several high street banks even tried to get him to buy additional products with his loan despite the current scandal that is surrounding the interest rate sways and PPI (payment protection insurance).

Fingleton was unable to secure a loan at Santander, HSBC, or Barclays and did not have any luck until he went off the high street towards Metro Bank and Handelsbanken, both of whom have foreign owners.

These new smaller challengers are increasingly getting more of the small business loans within the UK as the major banks continue to try to recover from the scandals that have rocked them for the past several years.