According to the Competition and Markets Authority, 85% of SMEs bank with either Barclays, Lloyds, HSBC, NatWest and Santander. This is a surprisingly high figure given the frustrations that we often hear from businesses about banking with these institutions: legacy technology and outdated processes mean that trying to get what you need is way more complicated than it should be; you’re treated like a new customer when it comes to opening new accounts or applying for new products, even if you’ve been a loyal customer for several years; you can’t access products that support your business growth at the right times; your calls and emails often go unanswered; there’s a lack of transparency around the bank’s processes; and you’re onboarded at a snail’s pace.
At OakNorth, we know from our experience of lending more than £10bn to mid-sized businesses since our launch in September 2015, that a particular pain point for them is when they set up a new business account for their multi-entity business. A high-street bank will make them apply for a new account – a process that typically takes weeks to months, even if they’ve been an existing customer of that bank for decades. Why can’t banks take a more logical approach, noting that if a customer already has an account with them, the necessary due diligence checks must have been done, and therefore work with the business to open a new account quickly? This would mean the management team could get back to growing the business without delay and won’t waste valuable time on phone calls or visits to the bank.
Another pain point that’s often raised by our customers is that they’re bounced around between different teams and individuals when trying get tailored guidance on their growth plans, resolve an issue or just access everyday banking support. More often than not, high-street banks fail to provide an interconnected and personalised service for mid-sized businesses. The result? Mid-sized businesses are being left out in the cold when it comes to tapping into new business opportunities, failing to get access to a bespoke banking solution and ultimately, missing out on forming a strategic partnership with their bank. Why is it so difficult for banks to form meaningful relationships with those businesses who are at the very heart of UK communities?
These are questions our customers have asked us numerous times over the years, and are why we’re expanding from just lending, to a holistic banking offering starting with current accounts and savings vault, cards, payments, etc. We’ve worked with some of the best-known businesses in the UK – names such as Springfield Healthcare, Frogmore, Hayfield Homes, Daisy Green Collection, Bruntwood SciTech, and Scarborough Group International – and want to help more businesses like these make the most of their money, supporting them as they grow.
Working alongside Founders, CFOs, CEOs, and Directors, we’re building an offering from the ground up that scales with businesses and their aspirations, and that addresses their unique pain points. As a starting point, we’re assigning each business a dedicated OakNorth Business Partner – someone they can call or email to discuss their next business opportunity or if they need support. We’ll also be offering a competitive rate of 3.85% AER on easy-access accounts.
If any of what you’ve read today resonates, please sign up to our waiting list via this link to be part of our phased Beta launch and contribute to the creation of a banking proposition that works for growing, mid-sized businesses like yours. Or, register for our upcoming webinar on Wednesday, 31st January at 11am, where we’ll further discuss the reasons why mid-sized businesses feel like their banking needs are unmet, challenge the status quo and showcase how thinking differently can unlock businesses growth.
