Last week we welcomed Dave Fishwick, entrepreneur and star of the Netflix film ‘Bank of Dave’ to Guernsey as the guest speaker at our sold-out Gala Dinner.

Dave entertained 440 members of the business community with his David & Goliath tale of taking on the banking establishment and shared his view on Chamber’s campaign for better business banking.

A bit about Dave

The blockbuster film ‘Bank of Dave’ is based on the true-life experiences of Dave Fishwick; it tells the story of how a working class minibus dealer from Burnley fought to set up a community bank so that he could help the local businesses of Burnley not only survive but thrive.

He had noticed that people were finding it increasingly difficult to obtain loans from their High Street Banks and he decided that he could help. In his bid to help his beloved community of Burnley he took on the financial institutions of London and fought to receive the first, new banking license to be issued in over 100 years.

Burnley Savings and Loans officially opened its doors in September 2011.

So, why was he invited?

We need better business banking, and this is his bag. Dave shared his experiences in championing banking reform and offered valuable lessons for Island’s businesses both large and small.

His firm belief is that everyone should have access to straightforward financial products and services, and this clearly aligns with the views of Chamber and our members.

Busting Banking Barriers

Guernsey’s reputation as a first-class finance industry is well-established. However, there is a big gap between that offering, and the range of services and products that are provided to local businesses.

At every point we hear deputies talk how we need to diversify industries, to attract new business to the islands and encourage start-ups but it can feel like the exact opposite in practical terms.  It takes over 16 weeks to open an account, there is only one bank who offers credit cards and only a few banks have adopted open banking- and now this. It’s just not good enough. We need to create a level playing field for all businesses in Guernsey.

To gain an understanding of the challenges faced by local businesses in the banking sector, the Chamber of Commerce surveyed businesses to identify pain points and areas for improvement.

What did members say?

When looking at the data on the quality of banking services and the range of solutions available, a picture emerges of a banking sector that is failing to meet the needs of the business community in multiple ways.

  • A staggering 98.7% of respondents indicate that they have experienced challenges or barriers when using banks for their business needs on the island.
  • A majority of businesses 69% believe the quality of banking services to be “Low quality” or “Very low quality”.
  • Only a small minority, 4.9% rate the banking services as “High quality,” and none rate them as “Very high quality.”
  • A combined 81.4% of respondents are either “Dissatisfied” (46.9% ) or “Very dissatisfied” (34.6%) with the range of banking solutions available to businesses on the island.

The near unanimity of the responses is a very strong indicator of systemic issues in the banking sector suggesting that problems are widespread. This should be a cause for urgent concern and immediate action by the banking sector and regulatory authorities.

Overall, this signals a critical need for change and presents an opportunity for both existing financial institutions to improve and potentially for new entrants to provide better services that meet the needs of businesses on the island.

What are we going to do?

We are dedicated to addressing this issue and ensuring that the business community in Guernsey receives the best possible support and services. To date we have met with the Association of Guernsey Banks, GFSC, Guernsey Finance and Government, and are pleased to report that Economic Development has commissioned a report from Deloitte into the state of banking services on the Island.

The final word comes from Dave…

“I’m a firm believer in supporting your local community, backing yourself and getting people together to achieve great things. Small businesses are the cornerstones of our communities, and we need to support them especially in these tough times. I’m really looking forward to the event, and I hope that my advice and experience will be both valuable to help you succeed.”