If you’re a business customer of RBS you could get a cash incentive to make the move to another bank. It’s called the Business Bank Switch (BBS).
Why is this happening?
During the financial crisis in 2008 and 2009, RBS received financial support from the UK Government. As a result, they made a commitment to help increase competition in UK business banking and decrease our own market share.
Previously, it meant that business and commercial customers of Royal Bank of Scotland in England & Wales were due to become part of a new bank, Williams & Glyn, but this is no longer going ahead.
Instead, an incentivised switching scheme – Business Banking Switch – was approved by the European Commission. This scheme is designed to provide you with offers that are better than those normally available on the market, which may range from free banking to cash incentives.
25th February has been set as the launch date of Business Banking Switch by Banking Competition Remedies Limited (the BCR). The BCR is an independent body that’s been created to oversee the scheme and make sure it’s run fairly.
On 19th December 2018, the BCR confirmed that 11 organisations are eligible to participate in Business Banking Switch. We expect offers will be available from nine of these organisations when the scheme launches on 25th February 2019. A further two organisations are expected to launch offers later in 2019.
Who does it affect?
Most of RBS business and commercial current account customers, with an annual turnover of up to £25 million at individual company level, who were due to move to Williams & Glyn, will now be rewarded to switch to one of a number of participating banks. Switching isn’t mandatory but eligible customers will be rewarded for doing so.
What do I get out of it?
A fund has been set up to allow participating banks to offer deals and rewards for eligible customers that switch their business current accounts. The scheme has been designed to provide customers with offers which are better than those normally available on the market. Additional deals and rewards may also be available if you choose to switch any existing loans you have with us alongside your business current account.
11 organisations are participating in the scheme:
- Arbuthnot Latham & Co Ltd
- Co-operative Bank plc
- Clydesdale Bank plc
- Hampden & Co
- Metro Bank plc
- Monzo bank plc
- Nationwide plc
- Santander UK
- Starling Bank Ltd
- Svenska Handelsbanken AB
- TSB Bank plc
When does this happen?
The scheme goes live on 25th February 2019. It will be a busy time with all the participating organisations moving to win new customers. Businesses that move quickly may be better placed to take advantage of any incentives, so do your homework and be ready to go on the 25th.
How do I switch?
On February 25th go to the website of your current bank and find their switching page (click here)
You’ll be able to click on any of the 11 participants you’re interested in hearing from. They’ll then get in touch with you with their offers. Pick the one you want and your old and new bank will help you make the switch.
Can I refinance my debt?
Although this will take up valuable time, it’s an opportunity to look at your finances and see if you can get a better deal elsewhere. For example if you need to move business debt, you could refinance or get a funding boost at the same time.
There could be other reasons too. While your new bank may have a great offer for your current account, they may not be able to take on your debt as well, or it may take several weeks to sort out.
Find out more at RBS Business Banking Switch