11 lenders chosen for RBS's SME switching scheme

The scheme was agreed as an alternative to RBS selling off its Williams & Glyn challenger bank.

The Board of Banking Competition Remedies has now announced the 11 organisations that meet the eligibility criteria for the Scheme, which will provide funding of up to £275 million from RBS for the firms to use as incentives for SME customers.

The 11 firms include Arbuthnot Latham & Co, Clydesdale Bank, Co-operative Bank, Hampden & Co, Metro Bank, Monzo bank, Nationwide, Santander UK, Starling Bank, Svenska Handelsbanken AB, and TSB Bank.

A dedicated website will place the organisations’ offers in front of former Williams and Glyn’s SME customers at the end of February 2019.

Four organisations were not, at the time of application, live members of the Current Account Switch Service, which was one of a number of pre-set entry conditions, however all four said their membership will be fully operational early in 2019.

Banking Competition Remedies is also considering a second application window in late Spring 2019.

Godfrey Cromwell, BCR’s chairman, said: “It’s very good news that a broad selection of organisations have stepped forward and made a diversity of offers right across the SME client-base. Today’s announcement marks an important milestone for Incentivised Switching.

“Customers will be the real decision-makers here. We look forward to getting through the contracting stage and seeing these offers made public so that customers can react. We anticipate that a further application round in Q2 2019 will widen the range of offers still further.”

Richard Davies, TSB’s SME banking director, commented: “At TSB we’re committed to helping more people to start, run and grow their small businesses. We’ve a new business banking proposition and we’re excited to be able take part in the Incentivised Switching Scheme when it opens in the New Year.

“Alongside our bid for the Capability and Innovation Fund this means TSB can support even more local businesses, working together with them to help communities to thrive.”