Virgin Money has revealed plans to re-start entry into the UK’s ‘poorly-served’ small business banking market, a year on from shelving due to concerns around Brexit. With the first savings account launching in January 2018, will you consider a switch?
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A new challenge for the top lenders
It may be the second time around for Virgin Money, but the move into small business banking territory looks set to challenge the UK’s biggest lenders, including Moneyfacts top-named 2017 banks Clydesdale, Bank of Ireland and Barclays.
Virgin Money small business banking will launch in 2018
An SME savings account is due to launch in January 2018, kicking off a raft of further offers and plans geared towards the small business market.
Virgin Money have confirmed their aim to secure £5 billion in SME deposits within five years, looking to capitalise on the ‘attractive but poorly served market’.
Commenting on financial targets and position for year-end, Chief Executive Jayne-Anne Gadhia said, “We are also delighted to announce the start of our journey into SME banking and we will be launching a new SME savings account in January 2018.
“This will enable us to start developing relationships with business customers and lay the foundations for potential broader future development in this attractive, but poorly served market.”
A new option for challenger banking
Virgin Money have also announced the roll-out of its new digital banking platform, set to launch in 2019. Ms Gadhia cited digital banking limitations as the defining difference between the challenger and traditional lenders, with legacy systems as a key issue.
She also went on to dismiss digital startups as competition, as they ‘currently lack the customer base to disrupt the sector on any significant scale.’ You’ll want to make up your own mind on this though, given that challenger banks such as Metro and Tide have been steadily gaining favour with small businesses across the last few years.