Switching banks
Once you’ve applied

Switching banks

A good banking relationship is crucial to your business operation and, in many cases, the financial survival of your business.

Even if you are happy with your bank, you should still meet with them at least once a year to discuss your requirements and potential areas of improvements in products and services.

Switching banks

What to do if you are not happy with your bank

If you are not happy with the service of your bank, discuss it with them and review your accounts and facilities. Before making the decision to switch banks, ensure you thoroughly compare the services provided by your current bank(s) with those of the new provider and assess the strength of your relationship with your current lender.

Ask yourself are there some intangible benefits in using your current lender who knows your banking and business history, which you may lose in a new relationship?


Review your bank accounts and facilities checklist.

Things to consider when reviewing your bank. Tick off the ones you’ve got sorted below.

Have you created a list of all bank accounts in your company?

Include what the account is used for; account details such as branch, BSB, account number, account name; and any special arrangements with each account, such as set-off arrangements. All social accounts, old companies, branch accounts, petty cash accounts and special-purpose accounts should be included.

This information can be obtained from your bank statements or by asking your bank(s). You may be surprised at the number of accounts you have.

Have you obtained a letter of facilities?

Request a letter of facilities from the banks you deal with. The aim is to build a complete picture of all your banking arrangements. In your letter, ask your banks to ensure all facilities are covered, including:

  • Credit or purchasing cards
  • Merchant facilities
  • Trade facilities
  • Lease facilities
  • Any information on loans that the bank provides
  • Letter of credit
  • Internet banking
  • BPay
  • Cheque cashing

Have you selected your top three preferred banks on your business priorities?

How you select these can be based on any criteria, such as the bank you have the most transactions with, the quality of their service, friendly staff, convenience, or pricing sensitivity.

Knowing the existing or likely account manager (and having a favourable impression) is often a good reason to include a bank in your list.

Have you met with your current bank?

Once you have collected the required information, you are ready to meet your bank. The aim here is to give your existing bank a chance to improve the price and/or service or any other criteria you have noted.

When the bank has all your information, ask your banker what will be the best package and fees available to you. Usually, a bank will give you its best rates when you agree to do all transactional banking arrangements through them.

Have you reviewed your current bank’s offer?

The areas you should be reviewing are loan fees, interest margins, merchant facilities and cash handling if you are in a retail business.

If your bank offers you improved pricing and service levels, you may wish to stay with them and stop the review process. At that stage we recommend you ask your bank to detail a letter of agreement including the renegotiated fees, charges and service levels offered. If possible, negotiate for these revised terms to apply for one to three years. If your bank does not offer a better deal in pricing, you should find out why and what is missing from the picture.

Have you met with alternative banks on your list?

If you are not happy with your current bank’s offer, make an appointment with the next bank on your preferred bank list. If you disclose your current pricing, the second bank may only offer you a deal that is slightly better than that of your current bank.

Have you considered the following factors?

  • Will your business incur additional costs as a result of switching ?
    For example, costs in notifying customers and suppliers, changing deposit and cheque books.
  • Does the new bank’s service match your priorities?
    You may be able to find out by talking to some of their customers. You may have customers or suppliers who have an account with the new bank.
  • Give preference to the bank that allows you to meet with bank staff other than your account manager
    This should include the bank manager and perhaps even the regional manager. Staff movements occur on a regular basis within banks so it’s preferable that more than one staff member of the chosen bank has an understanding of your business and the banking relationship.

Make sure you're prepared.

0% Complete

Make sure you’ve considered the impact that switching banks could have on your business.

There's a few things to look at.

0% Complete

Don’t consider switching just yet, you’ll want to weigh up all the pros and cons first.

There's a few things to look at.

0% Complete

Don’t consider switching just yet, you’ll want to weigh up all the pros and cons first.

Not too bad.

0% Complete

There’s a couple more things to look at.

You're nearly there.

0% Complete

You’re in a good position to talk to start the process of switching banks.

You're nearly there.

0% Complete

You’re in a good position to talk to start the process of switching banks.

You're all set.

0% Complete

All set – you’re in the best position to start the switching process.