Tide recently asked 149 of our friends about their past experiences setting up a business bank account – and their answers have shocked us.
More than half (53%) of those we surveyed said they’d previously had to wait up to two weeks to set up a new business bank account. And, as if that were not bad enough, everyone else said it had taken them far longer - with some not having a working account 6 weeks after they’d first approached their bank.
This awful “market norm” continues to astound me. Of course it’s true that some applications are more complex than others. Nevertheless, having working in the finance sector for many years, I know there is no reason why the process of setting up an account needs to be so slow in the 21st century.
Access to data is better than ever, so it is easy for banking providers to know both who their customer is and their credit history. The problem is that the banks haven’t adapted to this new reality by updating their practices or systems, which - in most cases - are decades old.
Entrepreneurs are left in an entirely unnecessary state of limbo doing all that they can to appease the needs of the bank, investing time and energy that would be far better spent helping their business flourish.
And let’s not forget the hefty charges that small business owners pay to bank with their chosen providers. Enough is enough.
Small business owners deserve a current account that is designed around their needs. Fast, efficient and great value a service that helps make their life easier.
This is why Tide exists and we are just at the beginning of our journey to redesign financial services for small businesses.
In the future, when we ask people how long their account took to set up, they’ll answer in terms of minutes, not weeks – exactly how it should be.