| Banks missing opportunities to better serve small business - CFIB
Despite saying it wants to increase service to small- and mid-size business, Canada's banking sector is making little progress, the latest research from CFIB shows. Banking Matters reveals dwindling satisfaction with major financial institutions, with only two improving their rating since the previous survey in 2003. "Since the late 1980s fewer and fewer small business owners have applied for bank financing," CFIB President Catherine Swift explains. Small business loan activity has remained fairly stable since 1988 while loan activity for larger businesses has increased significantly. "This trend shows the banks may be missing opportunities for growth with the small business sector that accounts for 45 per cent of the Canadian economy," Swift says. "You have to question whether banks are meeting the borrowing needs of small businesses." CFIB asked members to rank their financial institution on nine performance indicators, including lending terms, service charges, access to full-service branch, online banking and treatment by their account manager.
Bankers see potential in women-owned businesses
Stephanie Zhang had an epiphany. "I was working in the cell phone store one day when I said to myself, 'I could own this place,'" said Zhang, who now owns not one but two wireless stores as president of Best Wireless in San Francisco. Like many entrepreneurs before her, she turned to family to help make her dream a reality. In this case, she accepted $20,000 from her father. She then turned to Wells Fargo Bank for small business banking services such as a company checking account. Zhang represents an important market segment that institutions such as Wells Fargo and Wachovia Bank are heavily courting with a range of such services. .
Plugged In: Check bank balance via text messaging
For years people have been able to do their banking via computer and more recently via the browser on their cell phones. Now Wells Fargo is offering some limited information via text messaging. The banking giant announced this week that both individual and small-business customers can get their account balances, check for recent activity and get contact information via text messages sent to their cellular phones. .
Banks' poor service an anchor on small-business growth: CFIB
Poor service from banks is stunting the growth of small Atlantic Canadian companies, according to a new national report from the Canadian Federation of Independent Business.
Banking Matters concludes that the five major banks are short-changing business overall. But CFIB's Atlantic vice-president Leanne Hachey says the problem is particularly acute in this region because there are fewer options here.
The report looked at nine factors, including service charges, willingness to lend and treatment by account managers. Nationally, credit unions, HSBC and ATB Financial (Alberta Treasury Branches) continue to receive the highest marks from the small business clients, but all three dropped in satisfaction rankings since 2003.
However, credit unions are the only ones of the three to have a strong customer base with small and medium-sized businesses in Atlantic Canada.
Wachovia boosts online offerings for small biz
Wachovia Corp. is expanding its online product offerings to include electronic deposits and bad-check recovery. The Charlotte, N.C.-based bank -- Central Florida's third-largest financial institution -- says the service will provide small businesses with cash-management services comparable to those available to most large businesses. With online deposits, small business owners can scan paper checks from their desktops and electronically send the images to Wachovia for deposit. Wachovia says the Internet-based application eliminates the need for software installation. To qualify, customers must have been in business for at least one year and have a Wachovia deposit account. In addition, Wachovia (NYSE: WB) has hired Federal Automated Recovery Systems, a subsidiary of Infinity Business Group Inc., to manage the electronic re-presentment of checks that have been returned for insufficient funds.
Wachovia boosts small-business offerings
Wachovia Corp. is expanding its online product offerings to include electronic deposits and bad-check recovery. The Charlotte-based bank says the service will provide small businesses with cash-management services comparable to those available to most large businesses. With online deposits, small-business owners can scan paper checks from their desktops and electronically send the images to Wachovia for deposit. Wachovia says the Internet-based application eliminates the need for software installation. To qualify, customers must have been in business for at least one year and have a Wachovia deposit account. In addition, Wachovia (NYSE:WB) has hired Federal Automated Recovery Systems, a subsidiary of Infinity Business Group Inc., to manage the electronic re-presentment of checks that have been returned for insufficient funds.
Wachovia boosts small-business programs
Wachovia Corp. is expanding its online small-business product offerings to include electronic deposits and bad-check recovery. The Charlotte-based bank, which has 15 branches in San Antonio, says the service will provide small businesses with cash-management services comparable to those available to most large businesses. With online deposits, small-business owners can scan paper checks from their desktops and electronically send the images to Wachovia for deposit. Wachovia says the Internet-based application eliminates the need for software installation. To qualify, customers must have been in business for at least one year and have a Wachovia deposit account. In addition, Wachovia (NYSE: WB) has hired Federal Automated Recovery Systems, a subsidiary of Infinity Business Group Inc., based in Lexington, S.C., to manage the electronic re-presentment of checks that have been returned for insufficient funds.
Shakers: Business personalities in the news
Luqman Arnold, former president of UBS and past chief executive of Abbey National, was preparing to buy a minority stake in Northern Rock, the British bank bailed out by the Bank of England. "The proposal would involve the immediate introduction into Northern Rock of a core team of Olivant's experienced principals," Arnold's firm, Olivant Advisers, said in a statement Monday. Olivant "isn't proposing an offer for the shares of Northern Rock," the firm said. Olivant, a London-based investment company established by Arnold and Alan Morgan, a former senior partner at the management consulting firm McKinsey, said a team led by Arnold would work alongside Northern Rock's management. Northern Rock, which suffered the first run on a British bank for more than a century, last month hired Blackstone Group as an adviser to help evaluate preliminary offers from investors.
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