Transfer from the RBS to the Co-op bank?
The Co-operative Bank is in line for a slice of the Royal Bank of Scotland's £775 million fund aimed at increasing competition in Britain's banking sector.
The Co-op is challenging high street stalwarts for a share of the retail banking market. But what are they offering, and why?
Ten years ago, the banking sector was in meltdown. Back then, RBS was one of the most adventurous of the big name banks - but, unfortunately, it had been a little too adventurous and hit problems so severe that it had to be bailed out with taxpayers money.
Now with RBS returning to profits, it is payback time. The Government has explained to RBS that it must help to make the banking system more competitive.
To do this, they will need to persuade thousands of their small business customers to transfer to other banks.
Of course, it is not that RBS don’t want these highly profitable customers - together worth £billions - but they don’t have much choice. If you are currently an RBS Business Banking client, you should already have been told that the bank needs you to find another financial supplier.
RBS will get in touch directly with all businesses who are affected, but if you've got questions and want to talk to someone independent about your specific queries you can call us on 0330 808 8802 or email [email protected].
Sugar coating the pill
RBS has been forced to make some generous provisions to help customers look elsewhere. The Business Banking Switch scheme will help thousands of business customers transfer to other banks, with £275m given to market challengers to make their offers to small business customers more attractive - plus a further £75m from RBS direct to customers to cover the inconvenience of switching.
At least 11 Challenger Banks will be financed under the scheme with all providing offers much better than those normally available for businesses moving their accounts.
The Co-op is one of the eleven banks which have decided to involve themselves in the scheme.
Will you be heading to the Co-op?
The Co-op bank is a well-established - albeit relatively small - player in the banking sector. It already has more than 90,000 small business customers, representing 2% of the small business current account market.
The Co-op sees itself as an ethical bank, and looks to avoid investing in companies such as those involved within certain elements of the arms trade, fossil fuel extraction, genetic engineering, animal testing and use of sweatshop labour, as stated in its ethical policy, and takes a firm stance on social matters.
But is a move to the Co-op right for you? Call us on 0330 808 8802 or email [email protected].
Can we help you make the right decision?
There are 11 banks in the shortlist for support from RBS, and choosing the right one for your business can be crucial.
There are many factors to consider. You may need a local presence. You may want personal service, and a business manager who is familiar with your business. You might prefer doing business online, and the possibility of using new services which help you do business faster.
You will also want value for money. Keeping costs down might be your key priority.
You may want to call on some expert insights to make sure you are making the right decision. At Rangewell we have a unique place in the business market. We have a team of experienced former RBS Business Bankers and Relationship Managers who know the business banking market inside out. We are independent and unbiased. It lets us take a clear and unbiased view of all the banks and what they offer to customers who transfer.
We work with leading banks and other lenders. It helps ensure that we provide unbiased and up-to-the-minute knowledge of the financial sector and of the players in it.
Our insights are provided by our team of funding experts. The include people with inside knowledge of the banks, and includes professionals who have worked as branch managers and business advisors. It is a combination that lets us provide the insights you need. We can look at your business and at your plans, and help you see which bank would best answer them.
You can call on our expertise completely free.
It’s part of our absolute commitment to supporting UK businesses with expertise as well as the funding they need. So to discuss leaving RBS call us on 0330 808 8802 or email [email protected] to talk to us about your specific questions and issues. When its a question of business money, we are always pleased to help provide the answers.