Banks promise manufacturing-focused local managers with lending power

Disempowering and deskilling local bank mangers had been a mistake, finance chiefs told WM's Show Me the Money summit, a meeting to boost links between the sector and the major banks. RBS and Natwest had begun developing a new wave of branch managers with detailed understanding of manufacturing, Alexander Baldock, MD at Lombard said. "We would recognise that the past 20 years has seen a dumbing down and a disempowering of the relationship manager role. We see that as a mistake and one we're trying to rectify." He added: "There's a significant investment in RBS and Natwest in reducing the portfolio sizes of relationship managers and within the bounds of responsible lending giving them significant local discretion." The comments came in response to heavy criticism from SME manufacturers over lacklustre local bank services. Peter Bennet, MD at SME manufacturer, Grovely Precision Engineering said: "The relationship has died over the past five years. I don't have a bank manager that understands my manufacturing business -- not only understands it but can also then help in other ways." Mark Lee, head of manufacturing at Barclays, responded: "I think you're right around a dumbing down of local managers. We are working very hard to try and address that wherever we can." Barclays had created a specialist manufacturing division to meet customer needs, Lee added. Lloyds said it failed to subscribe to the trend of dumbed down local branch managers. The bank had a network of experienced managers with discretion over lending held by senior operatives, Stephen Pegge, director of SME markets at Lloyds stressed. Other banks including HSBC and Santander issued pro manufacturing messages at the event and expressed their desire to build business with the sector. For a full report of WM's Show Me the Money meeting see our November issue.