Small Business-Bank Relationships and the Role of Internet Banking

In the aftermath of the Cruickshank Report (2000) and the Competition Commission's investigation (2002) into SME-bank relationships, this paper examines the current state of the small business-bank relationship and ascertains whether the Internet could be used to improve the quality of the relationship. It utilises a qualitative research method, which consisted of 24 interviews with small business owners and relationship managers in banks. The interviews, inter alia, address the following main research questions: what are the needs and expectations of small business owners from their relationships with banks? What do small businesses think about the overall quality of service provided by banks in the relationship context? What was the delivery preference of small businesses and banks in the relationship? What did small business owners and banks think had been the main effects of e-banking on relationship management. The paper incorporates a discussion of the main findings and makes pragmatic policy and practice recommendations based on the results.