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<strong>Business</strong>es <strong>deposits</strong> in<br />
uncertain times: an<br />
<strong>opportunity</strong> <strong>for</strong> banks<br />
Despite the current climate of rising interest rates, <strong>businesses</strong> appear to<br />
be maintaining their financial investment pattern. A mere 2% increase in<br />
usage of business deposit products was observed from Q1 2022 to Q4<br />
2023, while only 5% of <strong>businesses</strong> opened a <strong>new</strong> account and 8%<br />
increased their savings in the past year.<br />
The challenging UK economy, marked by high inflation rates and<br />
recession, seems to be constraining <strong>businesses</strong>’ ability to save more.<br />
However, almost half (49%) would consider opening a <strong>new</strong> savings<br />
account when there is a change in their financial situation.<br />
<strong>Business</strong>es identified higher interest rates and expert advice as key<br />
motivators to opening a <strong>new</strong> business deposit savings account. Banks<br />
could potentially harness this <strong>opportunity</strong> by offering more competitive<br />
interest rates or giving <strong>businesses</strong> more support and guidance regarding<br />
the benefits of the savings products that they offer.<br />
Learn More<br />
“Overall, rising interest<br />
rates represent a<br />
massive <strong>opportunity</strong><br />
<strong>for</strong> those banks who<br />
can act swiftly and<br />
offer products that<br />
appeal to an audience<br />
who have limited<br />
experience in this area”<br />
Philippa Whitham: Senior Director, Financial Services at <strong>Savanta</strong><br />
savanta.com<br />
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