UK Finance brings simpler banking to SMEs
SMEs in the UK can open or switch to a new current account more easily as bank providers now require the same information.
Trade association UK Finance has unveiled a streamlined checklist included in a new online guide. It worked with 18 business bank account providers to agree the basic set of information that each bank needs from new customers.
These banks include Barclays, Lloyds, HSBC, NatWest, RBS and TSB. The full list is here:
The guide applies to new and existing businesses that are based and operate in the UK; have a turnover of less than £6.5 million per year; and have a straightforward and clearly defined ownership structure.
Anyone wanting to use the service can now search “Business Account Checklist” on their chosen bank’s website or visit the UK Finance site here.
Stephen Pegge, MD of commercial finance at UK Finance, says this will “help to promote greater choice and competition in the business current account market”.
UK Finance adds that the Competition & Markets Authority (CMA) identified that the account opening process was a barrier to switching for some SMEs in its investigation into the retail banking market.
Other remedies unveiled today (2 February) by UK Finance concern the development of an SME loan price and eligibility tool, overdraft alerts with grace periods and transaction history for customers.