Allica Bank, the British business challenger bank, is doubling the size of its accountancy partnerships team to 16 less than a year after launch, in response to significant demand from the accounting sector.
The expansion comes as new data released by Allica Bank, based on a survey of more than 70 accountancy firms across the UK, shows that businesses are desperate for advice, but are unsure where to get it.
Accountants play an important role in supporting and advising established SMEs across the country, but many of these SMEs feel that they no longer get the support from their bank that they once used to. Allica’s accountancy partnership team was set up to help accountants step into the gap that high-street banks have left when it comes to business support and expertise.
Sophie Hossack, head of partnerships at Allica Bank, said: “Accountants play a key role in helping established SMEs across the country innovate, adopt technology and understand the numbers that drive the growth of their business, and they need the wider industry’s support to do this. Our accountancy partnerships team has spoken with over 1,000 accountancy firms across the UK, hearing the frustrations and challenges they and their clients face when it comes to banking.
“It used to be the case that businesses, regardless of their size, would have had a local relationship manager, supporting them with banking and broader business needs. While the demand for this level of customer support is still there, many high-street banks have withdrawn from serving established SMEs and taken away their relationship managers.”
Lacking the required support
Many businesses are turning to their accountancy partner, with 36 per cent of accountants reporting being asked for business advice by their clients on a daily basis. However, more than half of accountants said that, while their clients get some support from their business bank, more support is needed. Only three per cent believe business banking customers are getting all the support they need from their banks.
This is confirmed in another Allica Bank survey of 450 established SMEs undertaken. It found that just 41 per cent believe their business gets the attention it deserves from its bank, while 47 per cent are receiving no interest on their business savings.
Allica Bank research reveals that, compared to larger corporate businesses, many are offered lower rates or even no interest on their business savings by traditional banks. This ‘lost interest’ is costing the average business £2,268, equivalent to around £9billion of unrealised interest across the whole country, hitting the cashflow of hard-pressed SMEs.
Accountants don’t believe they have been given the tools to fill that gap either. Another poll Allica conducted of 170 accountants in partnership with the ICAEW revealed that only eight per cent of accountants regularly and proactively discuss business banking with their clients. While 46 per cent of those polled said they don’t have these conversations with clients at all and they don’t feel confident doing so.
Closing the gap
Led by Sophie Hossack and Richard Williams, the partnerships team at Allica Bank offers personalised and dedicated support to accountants and their established SME clients, helping them find the right products to grow or improve the health of their business. Focusing specifically on the established business segment, the bank has seen huge success, being named the fastest-growing company in the UK in The Sunday Times 100 last year.
Hossack added: “This ‘gap in the market’ means accountants are increasingly key advisors to the businesses they work with. Crucial to supporting accountants in this role, and ultimately supporting the established SMEs they work with, is equipping accountants with the resources they need to offer this advice. Our team aims to give accountants this support and help them unlock huge value for established SMEs, from market insights to better products and more personalised help.
“The success our team has experienced and the demand we’ve seen means we’re today doubling the size of our accountancy partnerships team to offer even more accountants and established SMEs the service they deserve and the economy needs.”
