Something To Bank On?

Recently, one of the UK’s leading high street banks ran into difficulty. Metro Bank announced that it was struggling, and that it would need to rethink its strategy. Metro Bank currently serves over 2 million retail and business customers, including a significant number of UK SMEs.

Its recent difficulties were an indication that even the most robust banks can run into trouble; whether Metrobank manages to navigate its way out of trouble, UK growing businesses should think about their current banking arrangements and ask whether they have sufficient confidence in their bank.

As background, Metro Bank has faced some financial challenges in recent years. However, it has taken positive steps towards recovery and recently announced plans to raise £500 million through a share sale in order to strengthen its financial position and fund future growth. It also committed to a management shakeup and appointed a new CEO, Daniel Frumkin.

Metro Bank aims to revitalise its operations and rebuild customer trust. They plan to: 

• Strengthen their capital position through a share sale to fund future growth.
• Focus on digital banking services and improve the customer experience.
• Continue their commitment to serving SMEs by offering tailored financial solutions.

While Metro Bank is making efforts to secure its future, some critics express concerns about its security. These concerns primarily revolve around the bank’s financial stability and ability to protect customer data. It’s essential to stay informed about these issues and make informed decisions for your business. 

So what might this mean for small and growing businesses in the UK?

In light of recent events and the evolving landscape of banking services, it might be worth  exploring alternative banking options for your business. These include: 

1. Fintechs: Digital-native banks like Starling, Monzo, and Revolut offer streamlined services and advanced digital features.
2. High St Banks: Well-established players like Barclays, HSBC, and Lloyds continue to provide comprehensive business banking services.
3. Credit Unions: Local credit unions often offer a community-focused banking experience with competitive rates.
4. Specialised SME Banks: Some banks specialise in serving SMEs, offering tailored financial solutions to meet your business’s unique needs.

Paul Beare Ltd was set up with the intention of helping businesses navigate the sometimes complex and complicated world of UK banking. We have a number of experienced ex-bankers on our team to help you guide you towards the best route to take, and get the right arrangements in place. 

You can find out more about the UK banking landscape here. So, if you’re starting up a business and need the help of a qualified accountant then at Paul Beare we can cover off all you need. You can contact us for help from tax and payroll to accounting and banking.