A third of British businesses plan to vote with their feet on switching bank

More than a third (36%) of British businesses are considering switching their banking provider in the next two to three years.

Poor levels of service and dissatisfaction with their current bank as well as the attraction of new offers and better rates are the key drivers, according to research commissioned by Clydesdale and Yorkshire Banks.

Out of 1,010 British businesses surveyed, over a third (36%) had switched banks at some time. Of those to have switched, poor service was deemed to be the main reason for moving by more than one in five (21%) with around the same number citing the attraction of better terms and conditions (19%).

While up to a quarter (25%) of British businesses may consider switching bank in the next 12 months, more than one in five (20%) businesses cited the “hassle” factor as the main barrier to switching.

Colin Fyfe, Divisional Director for Clydesdale and Yorkshire Banks’ iFS Business and Private Banking Division, said:

"British businesses have been incredibly loyal to their banks but this research suggests a growing number of companies are considering switching. We believe that many businesses will use next year as an opportunity to look at whether their current bank truly fits their needs and future growth potential. If that is found wanting then it should be no surprise when businesses start to vote with their feet and switch bank in the next couple of years."

"Understanding what British businesses need to help them grow and exploit emerging opportunities over the next 12-18 months will cover much more than just financial support. It is about really getting under the skin of businesses – understanding what makes them tick and what challenges they face."

To help strong businesses realise their growth potential, Clydesdale and Yorkshire Bank’s Investing for Growth initiative is designed to help successful businesses grow and develop by easing their cashflow pressures. It offers both new and existing business customers a dedicated planning service and a more flexible approach to lending.

As part of a two-year lending pledge to business and mortgage customers, Clydesdale and Yorkshire Banks remain on track to deliver £10 billion of new lending by October next year.