Current Account Switch Service: 80% of UK SME decision makers worried about their business future
New data from the Current Account Switch Service finds that UK SME decision makers might be optimistic for the year ahead, but a considerable proportion (24%) of those surveyed admit that they regularly feel anxious because of business worries.
The poll of over 2,000 respondents found that continued and increased revenue (43%) and more work with new and existing customers and clients (45%) also featured high on UK SME decision makers surveyed list of goals for the next 12 months.
Despite this sense of optimism for the year ahead, just under 4 in 5 (79%) respondents shared their worry about the future of their business, leading almost three in ten (27%) of those who admit that they lose sleep due to their business worries to doing so 2 to 3 times each week. This comes as SME decision makers are faced with the challenge of balancing rising costs against delivering a profit.
As part of their annual review processes, nearly 7 in 10 (69%) SME decision makers surveyed shared their openness to consider switching their bank account, which for the considerable amount (36%) whose business has never switched may signal an era of more efficient finance management.
In recent years there has been a notable increase in consumers across the UK engaging with their finances to improve financial habits, from case studies of consumers using smart money hacks in the mainstream media to increasing numbers of ‘financially savvy’ influencer profiles on social media. As a result, it is therefore of no surprise that incentives to make money work harder were prioritised when respondents were asked what might influence their decision to switch. Lower fees (29%), competitive interest rates (27%) and better customer service (24%) were the most appealing.
The survey data revealed just under three in ten (29%) of SME decision makers surveyed use a personal current account to manage their business finances[1]. With over a third (35%) of those who use the same personal current account for their business and personal finances saying this decision has been made because the bank account they use offers the right services for their business. However, it could suggest that a large proportion of UK SME decision makers may be unaware of useful tools a business-focused account can offer to help streamline business operations.
Whether a personal or business-focused account is preferred, one key consideration for SME decision makers is access to in-person services, with nearly half (49%) of those surveyed who would not consider using a digital only bank wanting the option of being able to speak with a bank employee when they have a query or require support. This, in part, is thanks to cash still proving to be king for a large quantity and despite a general growing trend towards online and digital banking.
The data identified a regional shift in switching behaviours, with those in coastal areas admitting to having never switched the current account provider used for their business. A generational divide between Gen Z through to younger millennials, Gen X and baby boomer SME decision makers was also clear to see. Respondents aged between 18-24 and 25-34 were more likely (75% and 71%) to consider switching, compared to just over half (52%) of those aged over 55.
John Dentry, product owner at Pay.UK, commented: “The beginning of a new year is a great time for reviewing finances, whether as a consumer or a business owner, and it’s promising to see that many decision makers for small businesses in the UK are factoring in their business banking as part of this process. As our network of associated banks and building societies continues to grow, we hope this gives small business decision makers an increased sense of assurance and broader options when making the decision to switch to a new provider.
“We at the Current Account Switch Service are proud that the easy, free and guaranteed nature of our service can alleviate any stress around switching to a better current account provider and we too are optimistic that the service can support SME owners in reaching their 2024 goals.”
[1] ‘Personal current account – Same account that I use to manage my personal finances’ and ‘Personal current account – Separate from the account I use to manage my personal finances’ answer options combined.