It’s a slightly crazy thought but do they even need to make it work or just be in the game. If they launch a mobile only brand and it can offer even basic banking away from their usual customer service crapness they could probably use it to retain existing customers that might otherwise consider moving
I’ve been told by my current Business bank that my Business account (which I’ve had with them in good standing for nearly 8 years) is going to be moved to a Challenger Bank under some initiative by next Feb.
Seems like they’ll all be getting in on the initiative if it’s a chance to nab a load of decent customers?
No idea who I’m going to go with yet. I don’t like most of the options TBH but HSBC would be good for the amount of International payments we do.
Hi Peter, yes indeed I currently have a Natwest personal account, currently in the process of Switching, and a Business account with them too which they are chucking me out of (part of the reason for switching my personal account)
This line caught my eye which might be useful if you did want to stay with them:
Switching isn’t mandatory but eligible customers will be rewarded for doing so.
Do you have a list of participating banks? (There’s nothing on the website yet).
It’s practically certain, though, that HSBC (or a HSBC owned subsidiary or challenger) won’t be on the list. The purpose is to move the market share away from the big four:
You may hear the participating banks referred to as challenger banks. This is a term sometimes used for smaller banks who compete, or intend to compete, in the business banking and corporate banking market. Over 70% of small and medium-sized enterprise (SME) current accounts are currently with the big four banks (RBS, HSBC, Lloyds and Barclays), which is why the Government is keen to increase competition and provide more customer choice.
I initially read it as there would be an incentive from Natwest to leave, as well as a good offer from the challengers to join.
Rereading it, it seems that part of the RBS remedy fund needs to be used by the challengers on creating a better position than what’s otherwise in the market. Under this reading, I’d have thought that Starling might need to enhance their offer over and above what’s on the open market. That’s all assuming their bid to participate is accepted…
Something like Starling will vastly need to increase the features available to be worth switching to, I looked at them a while back and only being able to have one person have access to the account is hugely limiting for anything other than a sole trader.
Tide are only slightly better but, although I do have an account with them, the amount of scary stories regarding people having accounts frozen and closed without notice is too much of a put off for me to run my business using them.
I’m going to be incredibly interested to see what options are available because right now I really don’t see there being any.