Author Archives: aboveandbeyondbanking

Big Banks and Small Business

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Even as credit eases in the financial markets, small businesses are still finding it difficult to fund their operations. Unlike larger corporations, the typical small business lacks the clout and size needed to command sufficient attention from its bank. Many small businesses do not have a dedicated banking relationship manager as banks tend to focus on medium to large private business customers instead.

However it would be a mistake for big banks to neglect the small business in favour of bigger customers with large borrowing capacities. Large companies often start off as small businesses and an enterprise that has been supported by its bank since it was small is a loyal customer, not easily bought by another bank. These are the customers that the banks need for operational sustainability and who create true goodwill value for them.

The small business would certainly benefit from a banking contact through which they would be able to access the attention and facilities they need to grow. They need someone at their bank who understands the system and why their business is different, then structure lending facilities and debt covenants accordingly. Banks who neglect their small and medium sized business customers do so at their  own detriment, for these are the businesses that represent the most growth and potential to the banks’ own earnings.

Banks and  small businesses working together is a concept that should be the basis for all banking arrangements.Strategic vision and patience is required to identify and nurture promising small businesses, with the aim of growing these customers into larger businesses with in-depth financial needs. A bank with a longer term view would be prepared to forgo a small portion of today’s profit in favour of building a strong, loyal customer base for the future.

Banks should provide advice on Savings accounts, Current accounts, small business loans and even accounting services to small businesses if they want t help grow these into larger business. Sadly it is independent sites such as savings.co.uk who spend their time developing this information structure, no wonder their latest adverts state: We Know Savings. Banks need to get on the ball.

However not all is doom and gloom. There are banks in both side of the pond that really work hard to develop small businesses (our list of a few is below).

Resources:

Tips on picking the right business bank for you.

American Small Business Banking Services

UK Small Business Banking Services

 

Difference between American and UK Mortgage Services

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In the US, most banks don’t really provide a comprehensive service online especially when it comes to tools. In the UK, most banks are pretty decent, however it’s still the independent sites that provide information for most consumers. For example mortgage help from We Know Money is mines better than most UK banks such as Natwest or Barclays.

In the US, the leading advice sites on mortgages have started reappearing, now that the whole Lehman Brothers issues are being tackled by investment firms. The USA.Gov site has a decent source of information on mortgages.

The key differences from the UK to the US:

  1. Most UK Banks Market the services heavily and mortgage lending is encouraged.
  2. The UK government often allows for concessions in the mortgage market, but doesn’t offer them directly, unlike federal mortgages in the US – mortgage lending is left to banks mostly in the UK.
  3. Some banks such as Wells Fargo do market their mortgages, especially online, more than the average US bank.
  4. In the states these are often known as real estate loans, and the online market is dominated by brokers, not banks – however in the UK the market is lead by large affiliates and then by banks and then brokers.
  5. Pricing is more transparent in the UK than the US, where the market is controlled by brokers and not retail outlets, or affiliates.
  6. In the US, each state may have its own lending laws, while in the UK these are standardised.

Types of free services from your banks

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The banking sector has gone through a revolution over the past few years. Not only has the cost of banking reduced dramatically, but the ease of access to banking services has increased to a very high level. What is notable about this trend is the increase in the number of free services offered by banks.

It seems that there is so much competition in the banking sector that many commercial banks have taken it upon themselves to provide free services to their clients and potential clients in a bid to win and retain them. Or perhaps it is the result of improved technology, which has reduced the cost of running the banking industry. Either way, there are many types of free services offered by banks nowadays, which is very good news to the consumer. And while every banks has it’s own way of doing things, here are the common ones:

Consultancy service.

Many banks offer free advice to their clients on matters such as loans and investments. If you have a business plan and you need to find some advice on the financing, management, and other such matters, then your bank may be of great help to you. However, many observers are wary about this free service as there are good chances of it being biased. That, they say, is because the bank may actually have some vested interests in your situation. For example, if you asked for advice about financing a mortgage, the advice you will get from your bank will most probably lean towards their product. They will seem to be advising you on the best way forward, yet what they are really telling you is why their latest mortgage plan is exactly what you need.

Free Online Banking

With the internet having changed the way business is done in the world, banking has not been left out. Now, online banking is the in-thing in the banking industry. There is hardly a bank in the world without a website or any such form of online presence. Although there are banks that charge for all their online services, many banks have embraced a free online services policy. Such online services include funds transfer, account opening and balance inquiries. You can also inquire about the bank’s services or the status of such things as your loan applications. Many banks have integrated services such as PayPal into their systems in a bid to improve their customers’ online experience. This makes it easy to deposit funds free into your bank account, among other things.

Free Cash Deposits

Other types of free services include physical deposits. Most commercial banks have free cash deposit services for all their customers. However, there are cases when this does not apply. For example, if you deposit from money transfer institutions such as Western Union, Wire Transfer or PayPal, you may be charged some fees.

But…

It is important not to make any assumptions concerning free services from your banks. Always consult your respective bank to ascertain whether a service is really free, even if the service is known to be free in many other banks, because each bank has its own style of doing things.

List Of American Banks

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There are so many American banks that you can take advantage of for all your banking services and financial activities. Here is a list of some of the banks you will find in America.

Citybank  /Citicorp

This is the biggest financial bank in the United States. It serves about 45 million clients in over 90 territories and branches worldwide.

Bank of America

Is one of the biggest banking companies in America and serves over eight million businesses and people in choosing international markets and in the United States.

J.P Morgan

This bank is an investment bank that offers its services to governments, nonprofit groups, financial institutions, private firms, corporate and even wealthy people all over the world.

Bank One

Is one of the Americas leading banking institutions and is focused on innovating its products and promoting excellent customer care.

Wells Fargo

Started in 1852, is known  for offering reliable excellent services to clients in the western parts of America with 24 hours of services through ATMs, computers and branches.

American Savings Bank Hawaii

This is the fourth biggest banking institution in Hawaii with 46 branches and operates retail franchise with a focus on mortgage lending that is of excellent quality.

AmSouth Bank

This is a multi state banking firm with branches in Georgia, Tennessee and Alabama and operates over 360 offices with 11 institutions in the Huntsville area.

Amvest Financial Group, Inc

This bank has 24 years of excellent experience in selling private companies, acquisition searches, strategic planning and corporate financing.

Bank America Corporation

This is the second biggest bank in America and operates over 1,900 retail branches with 5,500 ATM networks n west America and operates 37 representative offices worldwide.

Bank of Boston

The bank was started in 1784 and is the oldest bank that a charted in America. It offers a wide range of global financial services, corporate services and personal financial services. It operates 100 international branches in 25 countries putting it in the third place as a large bank.

Bridgehampton National Bank

Is a corporation in New York that engages in commercial banking and was founded in 1910. It is the oldest commercial bank with its headquarters in South Fork. It offers customer services and commercial services.

Deep Green Bank

It is an online banking and financial institution; it offers online delivery systems and offers its customers attractive services

East Boston Savings Bank

The bank is based in Massachusetts and is a community based bank that offers financial services for businesses and its consumers.

Eastern Bank

The bank was started in 1818 and is a commercial bank with more than 2 billion dollars in assets and has its headquarters in Lynn, MA. It offers consumer and trust financial services, lending services and personalized customer services.

El Dorado Savings Bank

This bank was started in 1957 and has excellent savings programs and encourages owning homes though purchase, construction and even refinance loans.  The bank has ATMs, telephone banking and also internet banking as its systems of service delivery.

There are many other American banks, the ones mentioned are just a few of them.