The majority of small businesses feel trapped with under-performing banking services, a new report has found.
The research by the Financial Services Consumer Policy Centre at the University of New South Wales found only one-third of small businesses feel they are getting value for money from their bank, with the remainder feeling frustrated and dissatisfied.
And the frustration is compounded by an inability to change institutions due to a lack of information, a fear of high costs and a lack of competition.
Small businesses have called for the current
Trade Practices Act review to investigate "controlled monopolies" in banking services, as the big four banks account for 80 to 90% of small business deposit and lending assets in each state.
The report recommends a banking code of conduct and access to information for small business, as well as education campaigns showing benefits of changing banks.
Victorian Small Business Minister Marsha Thomson says the sector is not loyal as claimed in an Australian Bankers Association
report released earlier this year, but trapped.
Thomson called on the federal and state governments to review the report's recommendations.
For a full report on the small business attitude towards the Trade Practices Act review, get a copy of the July issue of Queensland Business Review, out this week. Email subs@pubserv.com.au or telephone 1800 649 578.