I think that sums it up well.
Some some tiny businesses plumbers electricians etc. That could be a stage payment that within about 10 seconds will have been distributed among suppliers, workers, vat bill etc. So not that unlikely in my view.
Maybe unlikely to leave it in their to rot though.
Starling should open up an investment product that’s linked to accounts soon, so for example your business account and personal and euro account could have one!
They had to make £775m available and have dished out £280m in the first round, so there is £495m still available.
This was what I thought, but I have a feeling that I read the 775m includes the business switching incentives thing too, so only half of the total was for grants. I could be talking nonsense though, I often am…
I thought the same. The business switching initiative is a nice idea, but the grant money will make it possible for small banks to provide an attractive account to switch to. have the switch incentives kicked in yet?
The Alternative Remedies Package is focused on the following two remedies to promote competition in the market for banking services to small and medium-sized enterprises (“SMEs”) in the UK:
A £425m Capability and Innovation Fund that will grant funding to a range of competitors in the UK banking and financial technology sectors; and
A £350m Incentivised Switching Scheme which will provide funding for eligible challenger banks to help them incentivise SME customers of the business previously described as Williams & Glyn to switch their accounts and loans from RBS, paid in the form of “dowries” to the receiving bank. In addition, under the terms of the Alternative Remedies Package, should the uptake within the Incentivised Switching Scheme not be sufficient, RBS may be required to make a further contribution, capped at £50m.
Ah, I see. I wonder if Starling will also be looking for a grant from the Incentivised Switching Scheme too?
They’re on the list of 11 banks that were chosen. I thought it was all done and dusted and ready to go live to RBS customers now-ish, but the website suggests there is a second window for applications so i’m not sure if the 11 chosen launch now and others follow later in the year or if the deadlines have just slipped.
Once chosen, they don’t just get given the money, a contract is then drawn up between the bank and BCR, once a contract is agreed, funds are released. This stage is agreeing the amount and who qualifies.