Rishi Sunak showed Dunkirk spirit when he announced his pledge to deliver “whatever it takes” to keep SME’s in business. However some UK banks just can’t deliver. Tens of thousands of applications are stuck in bank systems.
HSBC has tweeted to say that although they are trying to clear the backlog, they will not be able to send customers their vital funds for “a few days” after they have returned their signed approval letters. HSBC have ripped up Rishi Sunak’s promise to SMEs and are adding frustration by refusing to issue updates of any kind to clients.
The Bounce Back Loans were launched to an enthusiastic audience on Monday the 4th of May. 130,000 SME’s applied to their lenders and 68,000 had their funds by Tuesday.
For customers at some of the big banks operational issues and policy decisions have caused misery and frustration.
Many qualifying applications from last Monday are still to receive funds a week on.
HSBC revealed yesterday, Sunday the 10th, that the bank now has no time frame within which it will deliver BBIL loans to applicants. Previously staff had been telling customers to expect five to seven days, and it was widely reported that loans would only take 24 hours.
Over the weekend, customer questions were met with: “we have no way of telling you“.
HSBC designed a “Black Box” application system. This means an application is posted in one side, and the loan is issued from the other side if it is successful. But while the application is in the process it cannot be seen. Like Schrodinger’s cat
Challenged on this approach, the response is that customers don’t need to know when their funds will arrive.
Natwest appear to be having similar issues, with clients taking to Twitter to appeal for information and progress.
The Treasury’s desire to get funds into the economy as quickly as possible, and the traditional banking industries’ operational ability to move quickly is at odds.
Has this initiative been mis-sold by the chancellor, or has he been let down? It seems moist Banks can deliver to the exciting guidelines set out by the Treasury, but some are refusing to play ball.
The question is why?
In the mean time SMEs and their suppliers and staff watch the bank’s ’blackbox’ for their funds.
READ MORE ON THIS STORY HERE: HSBC REDEFINES 24 HOURS
LATEST UPDATE: NATWEST NOW STRAINING TO DELIVER BOUNCE BACK LOANS