MPs are asking banks to respond to business account delays
Treasury Select Committee Chairman Mel Stride MP has written to six banks to respond to the difficulties SMBs face in opening new business accounts.
The main banks are Natwest, HSBC, Barclays, Lloyds Banking Group, Metro Bank and Santander.
- Whether their criteria for opening business accounts have changed since the pandemic began
- Whether the waiting times have increased
- How customer complaints were handled
Commenting on the correspondence, Mr Stride said, “As the pandemic recovery begins, many SMEs will continue to need critical support from financial institutions. It is important that these institutions adapt to the needs of SMEs as the economy picks up. The Committee would like to know more about the situation in the current account market and whether action needs to be taken to alleviate the difficulties faced by SMEs. “
Other MPs sitting on the Treasury Select Committee include Conservative MPs Steve Baker and Labor MPs Rashanara Ali and Dame Angela Eagle.
The committee is responsible for questioning and overseeing the Treasury and HMRC as well as the Bank of England and the Financial Conduct Authority.
The banks were given a month to reply to Mr Stride’s letter.
In response to the message, Rich Wagner, CEO and Founder of Cashplus Bank said, “For many years, viable UK small businesses have been disappointed and driven by dominant banks that are only really interested in serving larger, established businesses Tire to jump company. Even so, it is shocking that many of the biggest players chose to slam the door all the way at a time of desperate economic hardship and when company registrations reached record highs.
“This crisis has shown that these are innovative digital challengers who are really committed to breaking down barriers and finding responsible ways to provide banking and, most importantly, credit services to the UK’s smallest and newest businesses. The government needs to re-examine plans to level the playing field in this market and put more efforts and resources into sustaining these initiatives so that small businesses can benefit from the banking services they deserve as they support the economic recovery from Covid-19 cite. “
Most banks do not allow small businesses to open bank accounts