Improving Banking Relationships with Small Companies

ABSTRACT

In this article it is argued that the dealings between small companies and their banks consist of a number of relationship elements. Because today most banks employ some kind of relationship banking, there is a need to further conceptualise the relevant dimensions in implementing such an approach. In a recent study ten small companies in the Stockholm area were interviewed. The results indicate that the account manager in the bank proved to be the crucial person in the customer-bank relationship and that banks can organise their activities and promotion in a supportive way. There is a large potential for improvements in banks in several countries regarding their relationships with small companies.