Business banking news review: week ending 18 Sept 2014
Much has been said about the relative success or failure of the new seven-day account switching programme, but it’s sure working well near the Scottish border.
The Payments Council recently said this week that some 1.1 million Brits have switched current accounts since the new expedited process went into effect 12 months ago, something that has been classified as a success. However if you dig a bit deeper you’ll realise that the figure really isn’t that astounding, especially since 1.2 million Brits switched accounts the previous year, and this was well before the seven-day switch requirement was in effect!
In other words, reports of the ‘amazing runaway success’ of the new programme really aren’t all that noteworthy at all. I know it sounds a bit cynical but it’s the plain, honest truth. However, what’s also true is that the number of business bank account holders living in Scotland that have been transferring their accounts to banks headquartered in England have positively gone through the roof, especially as the independence referendum is now upon us.
The Cumbria Chamber of Commerce has said it’s been positively ‘eyebrow-raising’ in the amount of funds that have been leaving Scotland ahead of the vote. The organsiation won’t kiss and tell of course, but they do say that it’s only natural from a business perspective. For what it’s worth it doesn’t matter if you’re for or against an independent Scotland personally – the truth is that a yes vote could bring shedloads of uncertainty into the region and that can easily be the kiss of death for businesses.
It’s not just firms big and small crossing the border with their cash, either. The chamber reported quite a few older couples shrewdly moving their nest eggs over to English banks. Honestly I can’t blame them – I wouldn’t want my retirement jeopardised in the event of a bank run or even just the temporary upheaval that might be caused by Scotland having to go about getting its own currency if Westminster doesn’t like them using the pound sterling. I suppose it won’t be long now until we find out what happens though, will it? There are Scots lining up at the polls even as you read this.