Incentivised Switching Scheme
The purpose of the Incentivised Switching Scheme is to provide funding of up to a maximum total of £275 million to Eligible Bodies to use as incentives to encourage SME banking customers (with an annual turnover of £25 million or less) of the business previously described as Williams & Glyn (the “Relevant Customers”) to switch their business current accounts and loans to the Eligible Bodies; £225 million of the fund is available in “dowries” with respect to any Relevant Customers that agree to transfer their business current account and £50 million will be available for loan related dowries for those Relevant Customers who move a loan product in addition to their business current account. Up to an additional £75 million has been made available by RBS to cover customers’ costs of switching (e.g. through waiving or reimbursing break fees and/or other third party costs incurred by customers, such as legal fees). The initial duration of the Incentivised Switching Scheme will be 18 months (ending 25 August 2020) or earlier if until such time as £225 million has been distributed to eligible bodies as dowries in relation to business current accounts.
For more information about how BCR monitors ISS participants, see here.
Participants in the Incentivised Switching Scheme:
- Arbuthnot Latham & Co
- Clydesdale Bank PLC
- The Co-operative Bank Plc
- Hampden & Co.
- Habib Bank Zurich plc
- Metro Bank PLC
- Santander UK plc
- Starling Bank Ltd
- Svenska Handelsbanken
- TSB Bank plc
- Nationwide Building Society *
*Following a strategic decision to delay developing its Business Current Account, Nationwide withdrew from its intended active participation in March 2020.
The amount of dowry that an Eligible Body is entitled to receive in respect of each Relevant Customer that switches are determined based on the Relevant Customer’s turnover and, if applicable, the outstanding balance on the loan product being transferred. Dowries are distributed quarterly. Eligible Bodies are required to use the dowries for the benefit of transferring Relevant Customers.
The applicable dowries in respect of business current account transfers are set out in the table below:
* Business Current Account
The applicable dowries in respect of relevant loan product transfers will be calculated as follows: outstanding loan balance transferred x 0.035. [The original factor was 0.025 and amended 25/03/20, backdated to the start of the Scheme.]