Challenger Capital’s Post

New SME Savings Tracker Reveals Massive and Persistent Gap in Savings Rates Offered to SMEs by Big Banks Compared to Digital and Challenger Banks Richard Davies, CEO of Allica Bank said: “Allica is determined to get a better deal for the country’s hard-working SMEs, which are being severely short-changed by a broken savings market. It makes no sense to see such a big gap between the rates offered by challenger banks and the large high street banks – and to see that gap jump by 13% in the last month alone shows how out of touch many of the banks are with SMEs and the pressures they face from the cost of business crisis. “It’s high time we saw action taken to make the big banks pass on more savings interest to their SME customers. As it stands, SMEs are losing thousands of pounds leaving their savings languishing in low interest accounts with the big banks.” https://lnkd.in/eevAgDwq #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Big Banks Denying UK SMEs Vital Cash as the Savings Gap Grows Again Richard Davies, CEO of Allica Bank, said: “Our latest data continues to underscore the need for an overhaul of the status quo, as UK SMEs continue to be short-changed by the big banks and their meagre interest rates. With the savings gap once again breaching 3%, there has never been a more appropriate moment to make steps towards a more transparent savings market. “The current state of the market means that the average UK SME is missing out on an average of £2,268 a year. For more established SMEs, the impact of this can be even greater. According to our data, a business with £1 million in the bank would be losing out on an average of £30,200 if it banks with one of the big six. “Business banking needs to change for the better – and we can start by making sure that all businesses have a clear picture about how to get the best deal on their savings. Better rates are out there – but customers need to know where to look.” https://lnkd.in/e3V7BRSs Philippa Gerrard Chloe Fenton (née Vaidya) Pragyani Bora Carlie Southworth James Heath Conrad Ford Grant Brown #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

SME Savings Tracker Reveals Banks Withheld More Than £200 Million of Savings Interest from British SMEs in Just a Month Richard Davies, CEO of Allica Bank, said: “SMEs across the country are getting ripped off when it comes to their business savings. By tracking the rates that major banks offer to their small business customers it shows that nothing is changing. “The Bank of England Base Rate has consistently sat at over 5% for almost a year now, which means there is no excuse for banks not to be passing on better savings rates to their SME customers. “Seeing the continued stagnation of the rates offered to SMEs just confirms to me that they don’t value their small business customers. It’s an incredibly tricky time to be a business owner in the UK and every penny counts.” https://lnkd.in/eDmKxNP3 #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

New SME Savings Tracker Reveals Massive and Persistent Gap in Savings Rates Offered to SMEs by Big Banks Compared to Digital and Challenger Banks. Read more: https://lnkd.in/eJdWZefT  Allica Bank #personalfinance #fintech #finance #FinancialIT

SME Savings Tracker Reveals Banks Have Reduced Average Interest Rates for Small Business Customers Richard Davies, CEO of Allica Bank, said: “Every month our tracker continues to show that British SMEs are being ripped off when it comes to their business savings. We hope that by bringing attention to this issue we can start to change things for the better and help business owners across the UK to make the most of their savings. “There are more than five million SMEs in the UK who bring huge value to the UK economy and our communities. It’s time they were given the banking they deserve.”   https://lnkd.in/ea-ybst9 #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

The country seems to be facing liquidity challenges going by commercial banks' overreliance on the discount window offered by fhe CBK. What this means is that the cost of funds has sky rocketed and hence, reduced margins for banks un this quarter. The biggest hit will be Tier 1 Banks and Microfinance Banks. Commercial banks have drawn KES 32.7bn ($327m) from Central Bank in the first two months of the year due to liquidity issues. In contrast, banks did not utilize the facility last year. Banks have already exhausted other options such as borrowing from each other and the interbank market has seen lending rates approaching the 2.5% ceiling. Emergency loans come with a premium of 4% above the benchmark interest rate, which currently rounds off to 17%. Let us keep it here on announcement of Q1 2024 results if the situation does not easen up to compare notes. Those who will win ghis are those who have friendly product offerings to the bottom.of the pyramid. #BankingKE #ThingsBanking

SME Customers Losing Out on £2,157 of Extra Interest Each Year Because Big Banks Aren’t Passing on Savings Rates Richard Davies, CEO of Allica Bank, said: “Allica’s goal is to help SMEs succeed and make the most of their hard-earned cash, which is why we are calling for a shake-up to the business savings market. It’s a tough time to be an SME in the UK and the last thing small business owners need is to be shortchanged on their savings – many without even knowing it. “Our Monthly Savings Tracker measures the extent to which SMEs are being ripped off on their savings. We hope that by continuing to track and spread the word we can help change things for the better and get SMEs the banking they deserve.” https://lnkd.in/eJjJEf6e #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

The Message Is Clear: When It Comes to Savings High Street Banks Still Take Small Business Customers for Granted Richard Davies, CEO of Allica Bank, said:  “Our data has shown a significant and continued gap between the rates SMEs are offered by challenger banks and their larger, incumbent competitors. For more established SMEs especially, who will have larger amounts of cash on the balance sheet, this difference can have a massive impact. In today’s high-cost environment, this could be the difference between adding an extra member of staff, or investing in new equipment. “As the UK economy stabilises after years of uncertainty, there’s little excuse I can see for this continued poor treatment of SMEs and their savings from our biggest high street banking names. And with the BoE lowering base rates yesterday, we’ll be keeping a close eye to see if the disparity improves. “We want to see SMEs get the cash they are owed and for business banking to change for the better.” https://lnkd.in/epwUHcXj Jack McClelland Chloe Fenton (née Vaidya) Lee Mannion Joe Jones Georgie Burks #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Understanding NCBA Group's Rate Hike: Key Insights and Implications Unpacked at https://lnkd.in/dSMsZHAV #NCBA #InterestRates #Banking #BankingInsights #FinancialNews #InterestRateHike #NCBABank #FinanceUpdates #BankingTrends #EconomicAnalysis #FinancialDecisions #MoneyMatters #BankingIndustry

UK SMEs Receive Poor Value from Major Banks, Research Shows - The Global Treasurer: ... Bank, expressed his concern over the treatment of SMEs by major UK banks. ... It also highlights the emerging opportunities for challenger banks to ...