The transition from traditional banking to digital banking is the result of technological advances and the effort made by bankers to cover the needs of their customers. In a recent survey by the Competitions and Market Authority (CMA) – in 2021 – the best UK business banking providers according to the opinions of their customers were published.
Starling Bank topped the rankings with an overall rating of 89%. Starling Bank, headquartered in London, was founded in 2014. The founder of the bank is Anne Boden who is also CEO. Its products focus on retail banking (individuals and businesses). It appears that Starling has attracted the interest of major investors because at the end of 2020, “The Times” reported that the big banks were considering acquiring Starling. The Starling CEO denied the information and said he was aiming for an initial public offering by 2022. Additionally, in March 2021, Starling announced a round of funding of £ 272million. Investors included were Fidelity, Qatar Investment Authority and Millennium Management.
Handelsbanken comes in second with an overall score of 75%. According to the bank’s annual report for 2020, operating profit fell 36% to £ 160.6million from 2019, in part due to lower UK interest rates which exerts pressure on margins and a slight increase in costs. In addition, profit after tax was down 35% to £ 119.6million from 2019. Revenue was down 11% to £ 506.1million from 2019, mainly due to the UK interest rate reduction seen throughout 2020, while net interest income fell by 10%. at £ 451.5million compared to 2019.
Metro Bank comes in third with an overall rating of 69%. Metro Bank was founded in 2010 by Anthony Thomson and Vernon Hill. Daniel Frumkin is CEO. In 2019, after a period of rapid growth, the bank encountered some difficulties with insufficient capital to meet regulatory requirements. In 2020, Metro Bank agreed to acquire Retail Money Market Ltd, a London-based peer-to-peer lending provider operating under the name RateSetter and in February 2021, Metro Bank purchased the entire loan portfolio of RateSetter, valued at 384 million pounds sterling.
The Santander comes next with an overall rating of 63%. This British bank is 100% owned by the Spanish group Santander. It was founded in 2010 and, according to the latest data, has more than 25,000 employees. At the same time, it has nearly 14 million active customers and 64 corporate business centers. The head office of the bank is in Euston, London. In 2021, the bank continued its policy of closing nearly 100 branches in the UK, a plan that was primarily announced in 2019 with the closure of 140 branches during the year.
Barclays and NatWest round out the top 5 digital banks with the best performance in 2021. The above banks achieved the same overall rating of 60%. With the help of the Barclays app, bank customers can manage their business account online, wherever they are, 24 hours a day. At the same time, NatWest customers have the option to apply for an account. get started, accept card payments with Tyl, get personalized banking services with Bankline and explore Business Builder.
In 6th place on the list, Lloyds Bank with an overall rating of 57%. In 7th place on the list is Bank of Scotland with an overall rating of 53% and in 8th place Virgin Money with an overall rating of 52%. Virgin Money provides smart digital tools for businesses to help them budget, save time, and manage their money on the go. With an overall rating of 52% also hold the 8e places HSBC UK and TSB on the list.
The Royal Bank of Scotland is ninth on the list with an overall rating of 48%. The cooperative bank occupies 10th place in the ranking with an overall score of 46%.
Follow the latest news live on CEOWORLD magazine and get updates from the US and around the world. The opinions expressed are those of the author and are not necessarily those of CEOWORLD magazine. Follow CEOWORLD magazine on Twitter and Facebook. For media inquiries, please contact: [email protected]