Over the previous 10 years, lower than one per cent of SMEs have switched checking account, in accordance with new analysis from Allica Financial institution.
The Present Account Change Service (CASS), has been used 4 occasions much less by small and medium companies than it has by private prospects, with simply 33,000 UK SMEs utilizing the service.
This places SME present account switching at its lowest stage for the reason that scheme started in 2013.
“I wasn’t shocked to see the stats which present that minimal numbers of SME banking prospects have switched their present accounts within the final decade. In spite of everything, what motivation has there been for them to take action?” Allica Financial institution CEO Richard Davies mentioned.
“That is precisely why Allica Financial institution exists — to supply a substitute for the large banks. SMEs solely swap when there’s a powerful profit in doing so.”
Together with a short lived RBS-funded ‘Incentivised Switching Scheme’, there was a short uplift in financial institution switching from February 2019 to June 2021, however since then the variety of SMEs switching accounts has dropped considerably.
That is largely on account of a scarcity of SME-specific companies from most incumbents.
Particularly catering to SMEs, Allica turned a member of CASS in December 2023 and is launching a brand new enterprise present account, the ‘Enterprise Rewards Account’, to provide established companies “compelling causes” to change their financial institution accounts.
“Our Enterprise Rewards Account affords no account charges, cashback on all purchases, and a number one financial savings price, so companies can swap and save completely,” Davies mentioned.
“Our mission is to rework banking for established SMEs and we’re decided to drive change out there — Britain’s SMEs deserve higher.”
In contrast, the variety of private prospects altering their checking account by way of CASS has steadily elevated since 2020, and the proportion of non-public prospects switching is 4 occasions increased than SME switching charges.
