UK Finance has announced that the process for small business owners preparing to open or switch to a new business current account has been simplified.

Eighteen business current account providers must now require the same basic set of information from new customers. UK Finance has published a new online guide with the essential details and documents that most businesses will need to open an account.

Any small business can now search ‘Business Account Checklist’ on their chosen bank’s website to access the guide or can visit the UK Finance website.

Stephen Pegge, managing director of commercial finance at UK Finance, said: “Opening a business current account is an important step for any business and we want to help ensure that the process is as simple as possible.

“The new guide we’ve developed with the banks aims to make the process easier for businesses, saving valuable time and effort by ensuring that all the information required is available so they are prepped and ready before the initial meeting takes place. We believe that this will in turn help to promote greater choice and competition in the business current account market.”

The industry has welcomed the move from UK Finance:

Anne Pieckielon, director of product and strategy at Bacs, said: “As operators of the Current Account Switch Service, we welcome today’s announcement and believe it is another important step towards simplifying the account opening and switching process.

“We know that small business owners are busy enough without the need to deal with further layers of time-consuming admin which, in many cases, could deter some from getting the very best deal from their business account.

Mike Cherry, national chairman of the Federation of Small Businesses, added: “Small firms have much more in common with consumers than big corporations. That’s why we need to move to an environment where small businesses are able to compare and switch banking services with the same ease that consumers enjoy. Today’s CMA reforms take us one step closer to making that a reality.

“Simplifying the process of changing business current accounts will remove one of the biggest barriers to switching and securing a better deal. Small business owners want to focus on running their firms. They don’t want to spend any more time than is absolutely necessary on paperwork.”

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