What is the Business Banking Switch ?
State owned bank RBS is preparing to hand over £6 billion in customer deposits and £4.2 billion in loans to *challenger banks. This was a condition of the bailout RBS received back in 2008; another was encouraging 120,000 business customers to switch. The government hopes this will increase competition and provide more customer choice. Originally known as the Incentivised Switching Scheme, it is now better known as at the Business Banking Switch. It will be implemented by Banking Competition Remedies Ltd. which is independent of RBS and the UK Government.
*Challenger banks refers to smaller banks such as Virgin Money, Clydesdale Bank, Tesco Bank rather than one of the big four (HSBC, Lloyds, Barclays and RBS).
There is £225 million available to challenger banks in the form of dowries to encourage the switch of eligible customers. The dowries range in size from £750 – £50,000 depending on the customer’s business turnover.
The challenger banks will determine how the dowries will benefit eligible RBS customers through deals and rewards.
Business Banking Switch is not compulsory but the offers that will be available will be better than those normally on the market. Businesses in financial difficulty may not be eligible and participating banks may have their own eligibility criteria.
When is it happening?
Business banking switch launches on February 25th, 2019 where headline offers will be available to view online at https://businessbankingswitch.rbs.co.uk.
You can register to receive news & updates regarding participating banks and the offers by visiting the site. (Just make sure you have your account number and sort code ready.)
If you are an eligible RBS customer and would like to talk about the Business Bank Switch with your Accountant then get in touch. RBS also has a dedicated Business Banking Switch team who you can talk to by calling 0800 151 2980, opening hours are Monday to Friday 8am – 6pm.