Across the country some Small and medium enterprises (SMEs) believe that business banking practices have undergone major changes with the advent of online banking, mobile banking and more powers delegated to branches and regional offices.
Some of them were even of the view that banks have become ‘heartless’ on the face of the global economic meltdown perpetrating recession.
“We feel that banks don’t really understand the needs of small customers, or know how to connect with us, they seem to chase only the large companies,” some of them said.
The Central Auckland team of BNZ Partners, based at Deloitte Centre on Queen Street will tell you different.
Senior Partner Ansuya Naidoo and Partners Matthew Cornes and Amanda Warrington said that BNZ works with customers to analyse how best they can help troubled businesses, salvage the situation and help them survive.
They however conceded that it was not always possible to help every business enterprise every time, despite the best of intentions.
The Balancing Act
Banks are obliged to impose stringent conditions for extending credit and small businesses always find it difficult to mobilise financial resources that they need either to make a purchase or expand operations.
Ms Naidoo said many cash strapped small enterprises have been obliged to down their shutters over the past two years.
“Companies that were unable to inject more capital into their operations and those that did not simply know how to exist within their means have had no alternative but to go out of business,” she said.
“It is important that we keep the bank strong to secure all our customers so we follow the credit criteria and ensure that the interests of the Bank are protected because we are accountable to our shareholders.”
However, many clients say that “BNZ is a bank with a heart and does not always decline requests for accommodation in the first instance. They examine businesses on a case-by-case basis and suggest solutions.”
According to Ms Naidoo, transparency and accountability were two most significant factors that distinguish BNZ from other financial institutions.
Harsh reality
SMEs are the major beneficiaries of the Bank’s new business models, with specialists who understood and catered to their needs better and faster than was the case a few years ago.
“While we do not walk away from a customer in the first instance, we do not offer false hope either. We try our best to help businesses that are in need. We are also conscious of the fact that every successful business is a success story for BNZ,” Ms Naidoo said.
Ms Warrington said many small companies had come to grief since the onset of the financial crisis in 2008.
“This has been a trying period for businesses, especially those that are owner-operated. Those that undertook a review of their operations, downsized their stocks and staff, reduced capital expenditure, introduced cost-effective measures, tightened credit and moved to alternate premises that saved further cost are today financially sound. Such exercises need courage but at the end of the day, these measures benefit businesses,” she said.
Ms Naidoo said companies that underwent restructuring process have remained profitable.
“Such companies will never go back to the old days of carelessness. On the other hand, a number of companies have turned the crisis into an opportunity to expand and diversify. They are a part of the BNZ success story,” she said.
Mr Cornes said the current economic situation was prompting companies to stick to their core business in which they have confidence and competence.
“They should also subscribe to concepts of good governance, be aware of competition, be sensitive to market trends and undertake periodic analysis of their performance and financial status.
“We encourage our customers to diversify and expand only if there is good chance of success,” he said.
As well as providing comprehensive financial solutions, BNZ offers invoice discounting facility to enable businesses to tide over temporary cash flow problems. Companies strapped for cash should consider this facility as a viable option forworking capital solution.
New Business Model
BNZ Partners Model is a new concept in banking which offers a series of facilities that could include board meetings, business meetings and video conferencing at its well-appointed centres throughout the country for its clients and prospects.
Ms Naidoo said business banking was based on personal relationship with clients.
She said that while the fundamentals of business banking had not changed, there was greater emphasis on tailored solutions that meet the needs of the individual customer.
“We do not shoehorn them into fixed solutions. And that requires us to have a good understanding of their business, their market challenges and their goals. We can then partner up with them to help them achieve those goals,” she said.
Editor’s Note: BNZ Partners is the Title Sponsor of the Indian Newslink Indian Business Awards (IBA) 2011, Sponsor of the Best Large Business Category and the Supreme Business of the Year Award.
