banking
survey
figure 2: Banking survey respondents 2010, by main bank
Number of clients
Charity income > £20m
Alliance & Leicester Allied Irish
Bank of Scotland Barclays
C. Hoare & Co CAF Bank Cater Allen Clydesdale
Co-operative Bank Coutts
First Trust HSBC
Lloyds TSB NatWest
Nedbank RBS
Santander Schroders Triodos
Unity Trust Bank Yorkshire Bank
Number in sample -
1 -
8 - - - -
3 - -
4 1 5
-
1 - - - - -
23
relationship with the bank and the recent banking crisis has done nothing to improve it,” comments the finance officer of a charity with annual income of £500,000. Low interest on deposit balances
tops this year’s list of banking gripes, followed by ongoing concerns over service levels, fees and charges, access to relationship managers and understanding the needs of charities. This year too, there is a new cause for concern – namely the recent decision of the Payments Council to phase out cheques by 2018. A meeting held at the end of
February by the Charity Finance Directors’ Group (CFDG), whose
www.civilsociety.co.uk
Charity income £5–20m
- -
2
12 -
1 - -
8 1 -
5 5 7
-
2 - - -
5 -
48
Charity income £1–5m
-
5 3
10 -
6 -
1
14 1 -
5
13 16
-
8 - - -
23 1
106
4 - -
10 1
31 1 1
12 -
1
12 13 11
1 3 1 1 4
31 -
138
Charity income < £1 m
Total
4 6 5
40 1
38 1 2
37 2 1
26 32 39
1
14 1 1 4
59 1
315
attendees included two charities that receive around 70 per cent of their donations by cheque, amply demonstrated the problems this decision poses charities and the pressing need to find acceptable, alternative methods of payment well in advance of the proposed cessation date.
Primary banking provider
Figure 2 lists the banks identified by survey respondents as their main or primary banking provider. Unity Trust Bank tops the league for the third year running for the highest share of primary banking relationships, up to 19 per cent from 17 per cent
last year. It is followed by Barclays and NatWest, whose respective 13 per cent and 12 per cent shares are in line with last year’s figures. Unity’s Trust’s position is underpinned by high customer satisfaction ratings across the board, which are all the more impressive as they are garnered from a higher number of of customers than other banks being rated (see Figure 3).
“ Personal service from an individual whom we know and who knows us is of the utmost importance.”
Based on survey data, banks
which have increased their share of primary banking relationships include Co-operative Bank at 12 per cent, up from 7 per cent last year, and HSBC at 8 per cent, up from 6 per cent last year. Conversely Lloyds TSB’s share of primary banking relationships has fallen from 14 per cent to 10 per cent, while Royal Bank of Scotland’s share has fallen from 11 per cent to 4 per cent. A striking feature of the banking
survey over the last few years has been the increasing share of primary banking relationships enjoyed by specialist banking providers such as Unity Trust, CAF Bank and Triodos, which stands at 32 per cent, up from 29 per cent last year and 25 per cent in 2008.
“ Charities who have lost money during the collapse of Icelandic banks should be reimbursed in full.”
Correspondingly the share of the
big four high street banks – namely Barclays, Royal Bank of Scotland/ NatWest, HSBC and Lloyds TSB – has slipped to just under 50 per cent, down from 58 per cent last year and from 64 per cent in 2007. And this comes at a time when the composition of the big four has been
Charity Finance April 2010
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