Last post: Feb 25, 2019
As part of the financial crisis in 2008, the Royal Bank of Scotland (RBS) received a bailout of £45.5bn from the Government after RBS struggled to overcome the buyout of Dutch bank ABN Amro. A bailout which kept the Scottish bank alive and kicking.
The bailout agreement with the UK Government came with a consequence however and the bank agreed to help increase the current competition in UK business banking and reduce their own market share. Allowing for a more stable banking industry which thrived choice and reduced RBS's market share.
As a commitment to their agreement, the Business Banking Switch Scheme was officially approved in September 2017 and allowed for business customers of RBS to literally be REWARDED to switch to another bank. This switch included both business current accounts and loan requirements. This scheme starts today (25th of February).
How can your Business Benefit from this Scheme?
Eligibility Requirements:
- The scheme is only available to RBS customers who were to be transferred to Williams & Glyn (a division of RBS which was halted).
- Your business must have a turnover of £25m or less.
- Your business must not be in any financial difficulty. This may include evidence of defaults and missed payments.
A total of £750 million has been set aside by RBS for the newly incorporated scheme and 9 banks have set themselves up for it with Nationwide and Monzo looking to come onboard. RBS will pay other banks using this pot of gold to offer incentives to businesses for switching.
The current banks that have opted-in to this scheme and are officially live include:
- Santander UK
- Metro Bank
- Starling Bank
- The Co-operative Bank
- Handelsbanken
- TSB
- Clydesdale and Yorkshire Bank
- Hampden & Co Bankers
- Arbuthnot Latham & Co
Reaping the Rewards of the Business Banking Switch Scheme
Now that you know the eligibility requirements and the banks involved with the scheme, it's time to look at the opportunities that it can provide for your business.
The most efficient way of determining what offers you can obtain for your business is through the Business Banking Switch website via RBS: https://businessbankingswitch.rbs.co.uk
The Royal Bank of Scotland could not have made it easier for you to gain from switching. The portal allows you to put in your business bank account details and then be presented with offers available to your business.
The Banking Competition Remedies's chairman, Godfrey Cromwell, said: "SME decision-maker customers will be able to access a diverse range of offers from a broad selection of organisations."
Whilst not all offers have been made publicly clear, TSB have stated that businesses switching to them will receive a cashback lump sum to say thank you and 25 months free day-to-day banking as well as other offers.
And MetroBank will offer an incentive payment to customers when they switch with the amount determined through the portal.
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