How to Switch Business Bank Accounts

A smoother way to change your business bank

Switching your business bank can feel like a big step, but the UK’s Current Account Switch Service (CASS) makes it simple and secure. In 2024 there were around 1.2 million current account switches across the UK, showing that moving bank is now routine. For small businesses and charities, switching activity has accelerated, with a record 10,393 SME and charity switches in Q3 2025 as providers sharpen digital tools and services. That means better choice and less friction for you.

The data also shows where service is improving. Monzo led SME and charity net gains in 2024, while some big incumbents saw the largest losses, suggesting many owners are seeking fresher, tech-led experiences. At the same time, two-thirds of customers who chased cash incentives switched back within six months, a reminder to prioritise long-term fit over short-term perks. This guide walks through what to compare, how to switch safely with CASS, and the pitfalls to avoid so you can choose a bank that genuinely supports your operations.

No jargon, no pressure. Just clear steps to help you switch with confidence.

Who will benefit from this guide

If you run a UK small business, start-up, micro-entity or charity and your banking feels clunky, costly or hard to reconcile with your accounting software, this guide is for you. It also suits established firms comparing digital features, fees and service levels to support growth or streamline day-to-day cashflow.

What switching really involves

Switching through CASS is a regulated process that moves your balance, Direct Debits, Standing Orders and incoming payments to a new provider within seven working days. For many SME and charity accounts, banks and building societies offer this service free of charge. Importantly, a payment redirection is set up for at least three years, which helps catch late payers or outdated invoices still referencing your old details.

Across the market, choice has widened. Digital-first providers are winning customers on user experience and functionality rather than £200 bonuses. Meanwhile, traditional banks are responding with new features and specialist support. CASS data shows 73% of SMEs would consider switching if there is a better fit, with priorities like accounting integration, robust mobile banking, transparent pricing and responsive customer service. In practice, that means comparing how each bank plugs into your finance stack, not just the headline fee.

How to switch step by step

Start by mapping your needs. Note the tools you rely on, such as Xero, QuickBooks or Sage, your payment volumes, international needs, card acceptance and any cash handling. From there, shortlist banks with strong API links and mobile features. Many owners open a new account and test the app alongside their current bank for a few weeks to reduce risk. This parallel run lets you experience categorisation, alerts, approvals and reconciliation before you commit.

Once you have chosen, initiate a full CASS switch from your new bank. They will coordinate the seven working day transfer, including redirecting credits and debits. Schedule the switch around quieter trading days to minimise disruption. Inform key suppliers and repeat payers, even though redirection is in place, to speed up the transition. Finally, reconcile your first week of transactions to confirm everything has moved correctly and update any saved bank details in payroll, invoicing and marketplace portals.

• Standout tip: test-drive the app before you switch to confirm daily tasks are faster, not just different.
• Keep a short checklist of payees, subscriptions and platform connections to verify post-switch.

Why timing and fit matter now

Switching momentum is high, signalling strong competition and innovation. In 2024, Monzo recorded the highest net gains among SMEs and charities, while several large banks saw the biggest net losses. Personal account trends echo this pattern, with providers like Nationwide showing strong net gains in late 2024, hinting that consistent service and fair pricing attract loyalty.

Digital features are driving decisions. SMEs rank accounting software integration first, followed by mobile banking, fee transparency and quality of service. Open banking tools make fees clearer and expose friction, which pressures providers to improve rather than rely on sign-up bonuses. Regions like Northern Ireland, Birmingham and Sheffield have seen elevated switching activity, reflecting local appetite for better options. In short, if your banking slows you down, market conditions are favourable for moving to a provider that fits how you actually work.

Bottom line: experience and functionality beat incentives. Choose tools that save time daily and scale with your business.

The upsides and downsides

Pitfalls to avoid

Do not let a headline bonus distract you from the essentials. Evidence from recent switching shows cash incentives often lead to short-lived relationships when day-to-day experience disappoints. Scrutinise pricing across standard transactions, international payments and card charges. Check limits on faster payments, user permissions and approvals, especially if you have multiple directors or a finance manager. Confirm how the bank supports disputes, chargebacks and fraud prevention, including strong authentication and device controls.

If you operate across marketplaces or accept card payments, verify settlement timings and how the account reconciles payouts. For exporting firms, compare FX rates and transfer speeds alongside SWIFT or SEPA access. Finally, set go-live at a quiet moment in your cash cycle, such as just after payroll or a VAT return, and keep a contingency fund in both accounts for a few days to cover any late-moving items while redirects settle.

Other routes you could take

1. Open a secondary account and run it in parallel long term for specific workflows.
2. Move to a provider’s premium tier instead of switching if features meet your needs.
3. Add a specialist payments account for payouts while keeping your main bank.
4. Use open banking tools to compare fees and usage before deciding.
5. Negotiate with your current bank using competitor offers as leverage.

Common questions, clear answers

• Q: Will switching hurt my credit score? A: No, using CASS to move your business current account does not affect your credit score. Providers may run eligibility checks when you apply.

• Q: How long does a business switch take? A: CASS aims to complete in seven working days once initiated. Build in extra time for testing and communication with suppliers and customers.

• Q: Are all business accounts covered by CASS? A: Most mainstream SME and charity current accounts are, but some specialist or complex accounts are not. Your new bank will confirm eligibility.

• Q: Should I chase a cash incentive? A: Only if the account also fits your long-term needs. Many switchers leave after a few months when incentives end and friction appears.

• Q: What features matter most for SMEs? A: Owners prioritise accounting integrations, strong mobile banking, transparent fees and responsive customer service. These tend to deliver daily time savings.

How Switcha fits into your decision

Switcha will connect you with the best options for what you are looking for. We compare features, fees and digital tools against your needs, then guide you through a safe, timely CASS move. No hard sell, just practical, transparent help so you can switch with confidence and keep your business running smoothly.

Important note before you switch

This guide is for general information only and is not financial advice. Product eligibility, fees and features change regularly. Always check the latest terms with providers and consider professional advice where appropriate.

Next steps

• Shortlist three banks that integrate with your accounting software
• Test the apps in parallel for two weeks
• Schedule your CASS switch for a quiet trading window
• Reconcile week one and confirm all mandates moved successfully