The government is asking banks to respond to business account delays

Originally written by Anna Jordan about Small Business

Treasury Select Committee Chairman Mel Stride MP has written to six banks to respond to the difficulties SMBs face in opening new business accounts.

The main banks are Natwest, HSBC, Barclays, Lloyds Banking Group, Metro Bank and Santander.

Questions include:

  • Whether their criteria for opening business accounts have changed since the pandemic began
  • Whether the waiting times have increased
  • How customer complaints were handled

Commenting on the correspondence, Mr Stride said:

“As the pandemic recovers, many SMEs will continue to need critical support from financial institutions. It is important that these institutions adapt to the needs of SMEs as the economy picks up. The Committee would like to know more about the situation in the corporate current account market and whether action needs to be taken to alleviate the difficulties faced by SMEs. “

The banks were given a month to reply to Stride’s letter.

Rich Wagner, CEO and founder of Cashplus Bank, responded to the message::

“For many years, viable UK small businesses have been disappointed and bounced by dominant banks that are only really interested in serving larger, established businesses. Even so, it is shocking that many of the biggest players decided to slam the door all the way at a time of desperate economic hardship and when company registrations reached record highs.

“This crisis has shown that these are innovative digital challengers who are genuinely committed to breaking down barriers and finding responsible ways to provide banking and, most importantly, credit services to the UK’s smallest and newest businesses. The government needs to re-examine plans to level the playing field in this market and put more efforts and resources into sustaining these initiatives so that small businesses can benefit from the banking services they deserve as they support the economic recovery from Covid-19 to lead. “

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Most banks do not allow small businesses to open bank accounts

The government is asking banks to respond to business account delays

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