A new report from Comarch has shown that banks are making credit available to companies in London’s Tech City, offering them attractive interest rates and straightforward lending processes. However, while banks are delivering on credit, they are failing to offer the value added services that could help these companies thrive.
For the ‘Banking on Tech City’ report, Comarch gained access to over 50 Tech City companies to ask them about the service they received from their banks. The results showed high levels of satisfaction over credit. Almost two-thirds (63%) of Tech City companies are happy with lending policies when it comes to getting credit. Only 12% have been refused credit, while just 18% believe interest rates are unattractive.
Despite the positivity around credit, the report also found that companies are not happy about the level of services that their banking partners are offering. For example, only 27.5% had been offered payment automations by their banks, and just 8% had been offered cash flow forecasting. This is important for corporates, as 57% of respondents believe that tailored banking services could help their business grow, while 31% would be willing to switch bank accounts to get better services.
Smaller companies are particularly frustrated with the choice of services on offer to them. Only 48% of micro-enterprises (those who employ fewer than 10 staff) are happy with their business banking.
Cash-flow based metrics now feature prominently alongside traditional revenue measures of business performance in the key figures or financial summary pages of any public company.
GTNews asks Pugsley about what advice she would give to treasurers dealing with mergers and acquisitions, what the key challenges for her year ahead will be and how she is selecting a treasury management system (TMS).
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
Tim de Knegt, strategic finance and treasury manager for the Port of Rotterdam, discusses how he is using blockchain, the challenges he will face in his role of treasury over the next 12 months and the advice he would give to someone starting out their career in treasury.