Should you take your RBS Business Bank Account to Nationwide?

If your business banks with RBS, you will probably need to make some big changes in the very near future. RBS may not be able to be your bank for much longer.

RBS offers a range of services for its business customers. It has provided not just everyday commercial banking, but lending, support and a range of innovative services.  But although you may count yourself a satisfied customer, RBS may not be able to continue acting as your bank.

The problem actually began around ten years ago, when the financial crisis struck. Back then, RBS had got itself into finanical difficulties so severe that it had to be bailed out by the government with an emergency investment of £45bn. Of course, that kind of investment needs payback. Now, the government wants a return on its investment and needs RBS to help support the growth of a more competitive banking system.

Not only does it mean that RBS will need to transfer thousands of small business customers to other banks - it will be forced to pay for it all . The Business Banking Switch scheme will transfer of thousands of its small business customers to other banks -  and charge RBS £275m  in the process.

There will be a further £75m provided to customers by RBS to cover the costs of switching.

It seems like a slap in the face if you have grown used to getting the service you need from RBS, but it probably will hurt them more than you. Not only are they having to say goodbye to thousands of profitable customers, they will actually be forced to help their competitors attract them.

However, it also means that if you are an RBS customer you will able to make your choice of at least 11 banks who will be financed under the scheme - and take your pick of the incentives and services they will offer.

Will it pay to decide Nationwide?

The Nationwide is one of the banks taking part in the scheme, and which will be competing for your business, although the offers they will be making may not be finalised for a few months.

Technically, Nationwide is actually a Building Society, but is the seventh largest cooperative financial institution in the world. It is also the largest building society in the world, with over 15 million members to its name. It still provides mortgage lending services that account for most of its business - but it also operates as a bank, offering a full range of services for personal customers.

Back in November it commited to launching business banking that  would shake up market.  They say that their account will be designed to meet the needs of small and microbusinesses combining fair value with Nationwide’s market-leading service levels - and combine innovative digital technology with access to branch service.

Do you need our help to decide what's best for you?

Having banks competing for your business may be flattering, but it means problem too. Your business depends on your bank. Choosing the right bank is  crucial to your future, and there is more to it than simply finding the provider with the lowest rates, or even one the offers products you like.

The Nationwide can promise a large branch network, and it certainly has ample resources - but can it offer the experience you need in providing services for your sector?

You need to make a considered choice. But with a small business to run, you don’t have time to look at everything that is available across the entire banking market. 

What’s more, there is never a single right answer. You might prefer the convenience of personal service, a business manager who knows you and your business, and a local branch.  You might prefer an entrepreneurial approach that matches your own, or simply want the lowest possible costs  

At Rangewell we work with all the leading banks and other lenders in the UK. It helps us take an objective view of how each one works and exactly what they offer. 

Whatever your particular focus, making the right decision might be easier if you can call on some independent experts.

Our team is made up of experienced banking professionals, including ex branch managers and  bank business advisors as well as sector specialists. It means we can discuss your business and your plans for the future, and use our up to the minute knowledge to help you see what bank would best be able to answer them for you. 

What’s more you can call on our expertise to help negotiate the deal you want from them. It's a buyers market. The Nationwide is just one of the possibilities.

Our expertise could save you money for years to come, but we offer it to you completely free.   

After all, whatever bank you choose now, we want you to become a client of ours one day, and help you get the business funding you need

To discuss how moving from RBS will affect you and the choices available, simply call us. We are always keen to help businesses find financial answers.