Business Banking Switch launched as part of RBS’ commitment to boost competition in UK banking
Business Banking Switch is a scheme that has been set up and designed to provide eligible customers with offers which are better than those normally available on the market if they switch their bank provider.
If you’re an eligible business customer with Royal Bank of Scotland or NatWest you may have heard about such an initiative.
The scheme will give up to 200,000 eligible customers a unique opportunity to choose from a range of exclusive offers to switch their business current account to a selection of participant banks.
If you are one of these customers have the chance to take advantage of these offers following the launch of the Business Banking Switch, on 25th February.
Why is it happening?
During the financial crisis RBS received support from the UK Government. As a result, to meet a European Commission (EC) directive on competition, the bank was required to divest several parts of its business.
This included Williams & Glyn – the name given to a portion of its UK Retail and SME banking business. However, following complications setting up Williams & Glyn as a standalone bank, Business Banking Switch was put in place as part of a broader package of measures to ensure the bank meets its obligations to the EC.
This means that RBS is taking the step of providing £350million to help a number of competitor banks to create bespoke offers that incentivise some of its SME customers to switch their accounts.
To take part in Business Banking Switch you must have a company turnover below £25 million, and be a customer who was due to transfer to Williams & Glyn. Essentially this is Royal Bank of Scotland SME customers based in England & Wales, as well as NatWest SME customers in Scotland and certain small business customers. If you’re one of these eligible customers you’ll have received a letter from the bank to let you know.
What banks can customers switch to?
As the overall aim of Business Banking Switch is to create more choice in the business banking market, the larger banks who currently dominate the market are not able to take part.
An independent body is managing the scheme and has confirmed that nine banks will have offers available from 25 February:
- Arbuthnot Latham & Co. Ltd
- Clydesdale & Yorkshire Bank
- The Co-operative Bank
- Hampden & Co
- Metro Bank
- Santander UK
- Starling Bank
Customers will be able use the dedicated websites below to view and compare offers from the participating banks.
If you’re a customer who is eligible for Business Banking Switch, the choice will be yours – and if you decide to switch your account, your business could benefit from the exclusive offers that will be available.
Author: Rob Allen, Managing Director, Commercial & Business Banking