‘Lack of options for business banking a disaster for Guernsey’
‘A disaster for Guernsey businesses’ was how the president of the Chamber of Commerce described a UK-based online bank shutting down local business accounts.
Starling Bank has been providing accounts to island firms for several years but it has now started notifying account holders that unless their main business interest is in the UK, the account will be closed.
A spokesman for the bank confirmed this.
‘Our terms for business accounts state that you have to have your main interest of business in the UK.
‘We’ve noticed that some accounts in Guernsey are against these terms and are in the process of reviewing these,’ he said.
Starling is defined as a ‘challenger bank’, along with companies like Wise and Revolut, because they offer innovative services and alternative customer experiences to the High Street banks.
Chamber of Commerce president Diane de Garis, pictured, is also managing director of chartered accountants DNA, and said that many local firms used Starling’s services since setting up an account was quick and easy.
‘Often a new business will open a challenger bank account before they wait the 16-plus weeks to open a local bank account,’ she said.
‘Challenger banks have all the best technology.’
If a Guernsey company tried to open an account it would be turned down because it was not listed at Companies House, but sole trader accounts might well be accepted, she said.
Starling’s move had left a lot of small and medium-sized businesses struggling to find an alternative, said Mrs de Garis.
‘The lack of options for business banking, the delays to opening accounts – it’s an absolute disaster for Guernsey businesses.’
She welcomed moves from Home Affairs to produce a new electoral roll and allow credit reference agencies to gain access to it.
‘We need to accelerate implementing a digital electoral roll and make changes to our registry so banks can digitise and automate their processes,’ she said.
‘This will make us a more attractive market for banks and payment platforms, and give our local businesses the products and services they need.
‘Without this, we are jeopardising our local businesses.’
