The latest Business Banking Service Quality survey organised by the Competition and Markets Authority shows a shift in the way UK businesses are choosing their banking partners.
Challenger banks are steadily gaining popularity, while it seems that some traditional high street banks are losing ground.
🥇Who came out on top?
The three top-rated banks for overall service quality were Monzo, Mettle, and Starling Bank. Challenger banks appeal to businesses with their streamlined digital platforms, faster account openings, and easy-to-use online tools, which can make day-to-day banking more efficient.
However, it’s also notable that Handelsbanken, a bank that holds itself to providing banking where relationships matter, came fourth in the poll. This was despite it not featuring highly under the online and mobile banking services category.
This suggests that while businesses value digital convenience, there is still demand for personalised support.
🏦 Is it time to switch?
Moving to a provider with better digital tools can save time on your routine transactions and the time spent dealing with your finances. Some banks may offer lower fees, more flexible lending, or a better interest rate, which can positively affect your bottom line.
A bank that understands the sector your business works in and provides proactive support can also be an asset that helps your business grow.
Of course, switching banks is not without its considerations. The process can take time and needs to be well managed to avoid causing issues for your customers and suppliers. It’s also worth noting that not all digital-first banks provide the full suite of services that a business might need.
🤔 Are there any other takeaways?
While the survey is about banking, the results provide some broader takeaways for businesses.
The growing popularity of the challenger banks suggests that convenience, speed and user-friendly digital tools are highly valued by many. The success of a relationship-driven provider also shows that personal contact, trust and tailored advice remain essential.
For businesses of all types, balancing these two priorities can be a key factor in building loyalty and satisfaction.
You might ask: Are my systems easy to use? Do my customers and employees feel supported and valued? Even small improvements in these areas can have a meaningful impact.
The business banking market is evolving. This might provide you with an opportunity to improve your own banking arrangements, or it might be a prompt to review how your own business is doing. Whatever the case, staying aware of changing expectations can help you ensure your business remains responsive and well-prepared for the future.
See: https://www.bva-bdrc.com/business-banking-service-quality-great-britain/