According to the bank, the small business banking market is dominated by the big banks that control over 90% of the market between them. TSB believes real competition is needed in this market to break the shackles the big banks have had on Britain’s small businesses for far too long.
BlueWaves will provide equity funding to early stage businesses and start-ups with a focus on small businesses based in regions right across the UK. These small businesses – including digital and e-commerce; software and technology; creative and media, to name a few – will now be able to secure the early stage investment they need to grow.
The investment announced today is on top of a multi-million pound investment programme already underway at TSB to build new banking services for small businesses across the UK.
TSB’s recently appointed Commercial Banking Director, Richard Davies, is leading TSB’s entry into the small business banking market.
Richard says: “What better way to kick start the year supporting the future of local small businesses than to invest right in the heart of the UK economy. This is a tangible example of how we want UK businesses to reach their full potential as we put our money where our mouth is.
We’re spending millions of pounds of our own money to build new services for small businesses, and our new banking platform will provide the springboard to really take on this market in 2018.
There’s a real moment of opportunity to create something better for small businesses in the UK – and through BlueWaves and the next generation of business banking – we are going to be leading the charge – watch this space.”
Paul Pester, TSB’s CEO, had this to say: “There are millions of hardworking people employed by over 5.7 million small businesses right across the UK, together they make up 60 per cent of the private sector economy. Not only that, but small businesses are the lifeblood of the UK economy – creating nearly three in four of all new private sector jobs since 2011.
Given our track record in bringing more competition to UK retail banking, we feel we are in the best position to make use of the Capability and Innovation Fund – often referred to as the RBS remedies – to break the shackles the big banks have had on Britain’s small businesses for far too long.
Imagine the good that money could do for Britain’s small businesses in the hands of a bank like TSB – one that has already shown its credentials in taking on the big banks.”
