More Bank competition spells good news for credit crunched SMEs
Things are looking up for the UK economy and SMEs in particular. A couple of new surveys suggest that the country may be on its way out of recession in October as manufacturing and service sector activity barometers show a real upswing. This is happening despite the fact that small businesses are still reporting that access to finance is difficult, or is being offered at a high price. That’s what i liked about the news filtering through yesterday about the planned introduction of new bank networks from next year. Whilst the likes of new entrants like Virgin, Tesco and Metrobank will aim primarily at the consumer, small business banking must be in their sights too. Although the main attractions planned to win customers over will be convenience of opening times and client service in general, its bound to be the case with newcomers that they get nicely competitive on interest rates, or at least, will handle requests for loans with care before accepting or rejecting them.
There’s nothing like a bit of extra competition- the established, somewhat tarnished high street banks will have to respond to the new world of british banking- and this can only mean a brighter outlook for British businesses who have been suffering in this credit crisis for far too long already.