Business Banking Switch
You might not have heard about the Business Banking Switch, but it’s something you should know about because there could be big perks for you and your business.
The short version is this:
Royal Bank of Scotland (RBS) is paying other banks to incentivise businesses to switch their current accounts to non-RBS providers.
What is the Business Banking Switch?
The Business Banking Switch is a scheme through which businesses can receive incentives for switching their business current account from RBS/Williams & Glyn to another provider. It’s designed to increase competition in UK business banking and decrease RBS’s market share.
The Business Banking Switch used to have the slightly less catchy name of the Incentivised Switching Scheme. It was created following the 2007/8 Financial Crisis, when Royal Bank of Scotland (RBS) was bailed out by the UK government.
RBS had originally planned to open a new business bank, resurrected bank-from-the-past Williams & Glyn. But that plan fell through and the Business Banking Switch took its place.
Am I eligible for the Business Banking Switch?
If you were due to move to Williams & Glyn, the halted business bank RBS had planned to launch, you will be eligible to switch and receive incentives through the Business Banking Switch.
NatWest and Ulster Bank, both of which are owned by RBS, are also part of the scheme. Your Williams & Glyn membership might have been organised through them – if so, you will also be eligible for incentives by switching through the scheme.
NB: The scheme is only eligible to those Williams & Glyn customers with a turnover of £25million or less.
What’s in it for me?
Potentially, lots. There’s no end to the incentives the challenger banks could offer if you switch to their service, but it depends on the individual bank’s incentive, and many of them haven’t been announced yet.
What if I’m not an RBS or Williams & Glyn customer?
If you’re not a Williams & Glyn customer, you can still compare business current accounts to find the right one for your situation.
The Business Banking Switch is a package of around £750million. Through the scheme, RBS will pay other banks to offer incentives to businesses for switching from Williams & Glyn to their services. You would be forgiven for thinking it sounds a bit odd — RBS is going to pay its competitors to take its customers away.
The Business Banking Switch officially launches on 25 February 2019. After that date, businesses who were signed up to Williams & Glyn’s service can switch to one of the designated alternative banks. There are currently eleven other banks that are eligible to participate in the scheme, and more are expected to be announced as time goes by. Those banks should offer incentives to help you make your decision to switch. The incentives could include things like a cash bonus when you join, or lower interest rates for an introductory period.
Find out more on the Business Banking Switch website.