Banks told to help SMEs
The Department of Trade and Industry is on the brink of announcing proposals to simplify the process that enables SMEs to switch between banks.
DTI ministers are concerned that SMEs should have an easier time finding the best deal among the main banks and that the banks themselves must reduce the complexity of transfering from one bank to another.
A Competition Commission report into the supply of services to SMEs has already concluded that a number of complex monopolies exist among the banks.
Reports in the press point toward ministers demanding that banks allow the creation of ‘portable credit histories’ to allow SMEs to move banking providers.
The commission’s report concludes that some bank practices clearly restrict competition in the provision of services to SMEs.