Business Banking Switch For eligible Royal Bank of Scotland and NatWest business customers.
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Business Banking Switch launches as part of RBS’ commitment to boost competition in UK banking Have you heard about the bank that’s asking some of its business customers to consider moving to another provider? Offers are available to customers who switch will be better than what is normally available on the market. It might sound a little strange, but if you are an eligible business customer with Royal Bank of Scotland or NatWest you may have heard about such an initiative and have received a letter about this.
Business Banking Switch Business Banking Switch is a scheme designed to 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 you will get the chance to take advantage of these offers Business Banking Switch from 25th February.
Why is it happening? During the financial crisis in 2008 and 2009 the Royal Bank of Scotland 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 unusual 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.
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Eligibility To take part in Business Banking Switch you must have a company turnover of £25 million or less at an individual company level 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 are an eligible customer you will have received a letter from the bank to let you know. Switching your bank account is not mandatory but you will be rewarded in doing so.
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. Banking Competition Remedies Ltd (BCR) is the independent body managing the scheme and has confirmed that 11 banks are eligible to participate in Business Banking Switch. Nine organisations will be available to the scheme on launch and a further two organisations are expected to launch offers later in 2019. Banks expected to introduce offers from 25 February 2019: •
Arbuthnot Latham & Co. Ltd
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Clydesdale & Yorkshire Bank
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The Co-operative Bank
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Hampden & Co
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Handelsbanken
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Metro Bank plc
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Santander UK
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Starling Bank Ltd
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TSB
Expected to join later in 2019: •
Monzo Bank
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Nationwide Building Society
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Comparing offers RBS has provided £350million to enable participating banks to create bespoke offers that incentivise eligible SME customers to switch their accounts. Offers are designed to be more competitive than what would normally be available in the market. These will include preferential terms such as free banking, a cash offer or something specific to support a customer’s business. Customers will be able use the dedicated websites we have listed below to view and compare offers from the participating banks. Additional deals may also be available if you choose to switch any existing loans you have with RBS that are alongside your current business account. From 25th February eligible customers will be able use dedicated websites to view and compare the offers available to them from each participating bank. They can then decide if they would like to switch their account/s as part of the scheme and benefit from the exclusive offers that will be available. Customers will be supported through the transition of moving to the new bank via help and information that is available online or through your existing relationship manager if you have one and via the dedicated telephone number on 0800 151 2980. If you are a customer who is eligible for Business Banking Switch, the choice will be yours. You can find out more by visiting the dedicated websites: Royal Bank of Scotland: www.businessbankingswitch.rbs.co.uk NatWest: www.businessbankingswitch.natwest.com Telephone: 0800 151 2980 Minicom: 0800 068 1289 International: +44 0161 933 8108 Opening hours: Monday to Friday 8am to 6pm, excluding bank holidays, calls may be recorded.
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