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Bank comparison website launches

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29th May 2014
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A website that allows small to medium sized businesses to compare accounts and products of over 70 UK banks has recently been launched. 

The Business Banking Insight website is a free, independent comparison site that will be updated every six months. It aims to help smaller firms make better finance and banking choices by showing them how other businesses rate each bank.

The initiative was announced by Chancellor Osborne last year and is backed by the Treasury, but driven by the Federation of Small Businesses (FSB) and the British Chamber of Commerce. It ranks 74 banks based on a survey of 5,000 businesses ranging from sole traders to firms employing 10-249 people. 

Users select their business size and can then choose one of two options: view results by business current account or view results by business product or service.

Credit cards, insurance, bank loans and general business services can all be compared, in addition to alternative finance products such as invoice and asset finance. 

Banks are then ranked by satisfaction levels using a five-star ratings system, based on five key factors: transparency, value, availability, tailored services and keeping consumers informed. Users can also view comments left by other businesses of a similar size.

According to the research, small businesses employing one-to-nine people rated more than half of banks on the list 3.5 out of 5 or below.

When it came to business current accounts, sole traders and business with one-to-nine employees gave banks an average satisfaction score of 60%, which rose to 65% for those employing 10-249 people.

The new site comes on the heel of news from the British Bankers Association (BBA) that bank lending to companies fell by £2.3bn in April to £275bn, the biggest monthly decline since July 2013.  

On AccountingWEB recently, turnaround expert Mike Smith from Jamieson Smith & Co pointed out that the alternative finance market has stepped in to fill the gap left by banks.

Commenting on the launch of the site, BBA chief executive Anthony Browne said: “Whether large or small, every bank will want to be at the top of these ratings, so this can only help spur competition between banks, leading to even more innovation, new products and better service for businesses.”

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