An investigation into the state of the British business banking market by CashFlows (of which I’m founder and CEO), suggests that small businesses are collectively spending more than £2.3bn a year on transaction charges and fees to run their business banking, while simultaneously not being offered the ability to earn interest on their business accounts.
The study exemplifies why changes in the services available to small businesses are in need of urgent review to help British business in their efforts to rebuild the economy.
According to the study, which was conducted by YouGov for CashFlows, 24 per cent of small businesses surveyed pay an average of £1,792 on business banking charges every year, such as transaction fees. Perhaps unsurprisingly, more than half of businesses (52%) would move their business current account to another provider to receive lower cost business banking services.
There is widespread demand for a change in the way that businesses are served by the existing financial services industry. Our research clearly demonstrates that there is a considerable gap in the business banking services currently being delivered by British banks and the services that customers actually require. There is a real need – and an ability – to simplify and reduce fees and charges to give businesses transparency and competitive choices.
One of the ways to reduce some of these fees and get to a position where interest could be paid is by consolidating a range of services into one current account.
Here is our infographic that provides the headline findings of the YouGov survey (Click to expand)
By Nick Ogden of CashFlows