The RBS Incentivised Switching Scheme is live providing funding of up to £275m to eligible switchers.
SME customers of the RBS business unit previously described as Williams & Glyn are being incentivised to switch. Target RBS SME customers are now able to switch their business current accounts and loans to ‘challenger’ institutions. In addition, a further £75m is being set aside within RBS to cover certain customers’ switching costs.
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Banking Competition Remedies (BCR), set up oversee the RBS Incentivised Switching Scheme, has named nine challengers eligible to participate.
The nine challengers are:
- Arbuthnot Latham & Co Limited
- Clydesdale Bank Plc
- The Co-operative Bank Plc
- Hampden & Co Plc
- Metro Bank PLC
- Santander UK Plc
- Starling Bank Limited
- Handelsbanken plc
- TSB Bank plc
Switching offers are live today on the dedicated Business Banking Switch websites:
Royal Bank of Scotland: www.businessbankingswitch.rbs.co.uk;
NatWest www.businessbankingswitch.natwest.com
RBS Incentivised Switching Scheme: Monzo and Nationwide
Two other challengers, Monzo and Nationwide are likely to be added to the RBS Incentivised Switching Scheme later this year.
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By GlobalDataGodfrey Cromwell, BCR’s chairman, says: “Today’s announcement is an important, on-schedule, milestone. SME decision-maker customers will be able to access a diverse range of offers from a broad selection of organisations.”
RBS is freeing up a pot worth £775m as part of the conditions dating back to its 2008 bailout.
This is made up of £350m available to incentivise switching and another £425m to boost business banking deals.
On 22 February, BCR announced the first round winners. BCR is awarding Metro Bank £120m, Starling £100m and ClearBank £60m.
There are around 6 million SMEs in the UK.
RBS NatWest currently has a SME market share for current accounts of around 22%.
RBS made a commitment to help increase competition in UK business banking by reducing its market share. Originally, RBS intended to do this by setting up a new lender, Williams & Glyn.
But RBS axed plans to spin off its proposed Williams & Glyn unit blaming complex IT challenges.
BCR will announce the next round of winners on or about 20 May.
