New research suggests that three in four entrepreneurs are open to switching to a new bank in a bid to get better value out of their business accounts.
A new poll of 1,000 UK small business owners, conducted by Censuswide for the Current Account Switch Service, has found that 73% of SMEs would consider switching to a new business bank account if it better suited their needs. Top motivators for changing business banks are: lower fees (cited by 50%); incentives to switch accounts (34%) and better interest rates (31%).
This openness to switching is particularly pronounced among younger entrepreneurs (aged 18-24), 84% of whom say they would consider changing their current account - reflecting a new generation who are more digitally savvy and open to change.
However, nearly one in three (29%) small business owners still rely on personal current accounts to manage their business finances, limiting their access to key services such as accounting software and tailored business advice and support.
What SMEs are looking for in a business bank account
The research highlights the key features that small firms most value in a business current account:
- Mobile banking leads, with 54% rating it a top feature, particularly among older SMEs and those based in rural areas.
- Fee-free banking (44%) and high-quality customer service (37%) remain top priorities.
- Integration with accounting software is important to 65% of SMEs - especially younger founders and digital-first businesses.
- And while digital tools are increasingly vital, physical access still matters: 57% of SMEs say access to a local branch remains important.
Small and medium-sized enterprises make up 99.8% of all businesses and employ over 16 million people, but access to financial services remains a challenge for some. In 2023, for example, 140,000 businesses were "debanked". Loan approval rates also dropped to below 50% in 2025, intensifying the pressure on SMEs to find financial services that better suit their evolving needs.
"As with a personal account, your business current account should support your financial goals. With small businesses across the UK looking to the future, many owners don't realise how much easier their financial admin could be with the right support. As we mark the beginning of a new financial year, now is an ideal time to consider whether your business banking is still working for you." John Dentry, product owner at the Current Account Switch Service.
How to change business bank accounts
The Current Account Switch Service is free to use, and a bank account switch will be completed in seven working days. Businesses can agree the switch date with their new current account provider. All payments going out (such as Direct Debits) and those coming in (such as salary) will be moved from the old account to the new account. Payments accidentally made to or requested from the old account will be automatically redirected to the new account for as long as the facility is required.
SMEs with a turnover of up to £6.5 million, small charities with an annual income of less than £6.5 million, and small trusts with a net asset value of less than £6.5 million can switch their current account provider using the Current Account Switch Service.
Written by Rachel Miller.