BCR Commitments

The ClearBank Tide Business Banking (CTBB) proposition unites the UK’s leading challengers in business banking (Tide) and banking infrastructure (ClearBank). The RBS Alternative Remedies Package represents a once in a generation opportunity to change UK SME banking for the better.

CTBB will deploy the Pool A award in a powerful program that will transform the business banking market for good:

1 - Commitment to own funds contribution: CTBB is committed to supplementing the BCR award using our own funds to a value of at least 100% of the BCR grant

Completed with a total of c£70m Own Funds spent alongside the £60m Grant.

2 - Commitment to market share: Achieve at least an 8% business current account market share by 2023

Completed with Tide’s Market Share standing at over 10%

3 - Commitment to the transformation initiative:

(a) Remove friction - Switching proposition: making BCA switching simple via open banking and CASS

Outstanding - The main elements of this commitment have already been achieved with a Switchers target of 171,105 being successfully passed in Q2 2023. The CASS delivery has now been completed and went live in Q4 2023. Our trial switching proposition is the one element remaining. The program target is to have 4,263, we currently stand at 631. At the current run rates and planned marketing activities, we project the program target to be met by end Q1 2024

(b) Starting-out proposition: Opening your BCA as part of setting up your business

Completed – CTBB has helped over 79,000 entrepreneurs register a limited company and get a business current account at the same time. Additional features include Self-Employment Registration (to help Sole Traders get a Unique Tax Reference number); VAT Registration (to help businesses get a VAT number who expect to have above £85,000 turnover) and registration for a domain and a trademark.

(c) Administration proposition: Saving you time by seamlessly integrating tools with your BCA

Completed - CTBB launched an in-app and web-based invoice scanner, with automatic text processing plus launching “Tide Accounting” which focuses on Self Employed businesses including a profit & loss report availability to all non-VAT registered Sole Traders.

(d) Credit proposition: Optimising your cashflow using BCA data

Completed CTTB has launched a Credit Insurance product with our partner Hokodo; a Direct Debit product with our partner GoCardless; a Merchant Cash Advances is available to B2C members partnering with Liberis; a Selective Invoice Finance to our members partnering with MarketFinance; Recovery Loan Scheme term loans through Funding Circle and YouLend; an Invoice Finance product for our B2B members allowing different segments within Tide to find the right product for them partnering with Bibby Financial Services and a Cashflow Optimisation Engine (named Cashflow Insights) available on mobile to provide multiple insights tools allowing our members to optimise their cashflow and find the right credit solution.

(e) Acquiring proposition: Saving you money by offering card and acceptance as a BCA feature.

Completed – CTTB launched our payment links product which SMEs can use to get paid without needing to have a website or card payment reader i.e. low entry costs to accept card payments. This builds upon the previously delivered acquiring onboarding product which allows Tide members to create a merchant account and avail of card payment acceptance products. Using existing account information, the onboarding product does all checks automatically meaning members can get an account without having to provide lots of additional information.

4 - Raise awareness: By extensively promoting the superior benefits of the CTBB business current account

Completed Brand Awareness significantly increased from 17% in period 1 to 56% over the Grant period. Also, a total of c£70m Own Funds have been spent alongside the £60m Grant including c£26m on marketing.

5 - Commitment to opportunities for partners: CTBB commits to integrate at least 25 SME solution partners by 2023.

Completed with 25 solution partners successfully integrated.

Our Pool E solutions target overcoming this new friction and provide powerful attractors by helping SMEs turn Crisis recovery into an opportunity. We will not only reignite competition, but - as one of the leading BCA challengers and proven deliverers - help to protect the gains made in a more competition-adverse post-Crisis environment.

1 – Commitment to BCA Market Share: CTTB will increase market penetration by an additional 1% (9% total) and target at least 25% switchers by end 2022.

Completed with Tide’s Market Share standing at over 10%

2 – Commitment to Remove Friction through Open Access: We will allow businesses to use their existing third party BCAs on our platform and target at least 70,000 BCA embedders to be able to utilise our offering of a) light frictionless onboarding using open banking, b) only upgrade to full onboarding later when they source a KYCable product, e.g. a loan. Businesses will be able to transact via our platform and we will provide advanced access to, c) expense management, d) invoicing, e) accounting and f) taxation features.

Outstanding – BCA embedders currently stand at 47,164 at the end of Q4. This includes c15,000 from Funding Options since their acquisition by Tide on 1 Feb 2023, as per guidance agreed with the BCR. As we're continuing the sales growth of Funding Options and the new Tide Instant Saver product through BCA embedding, we are rapidly approaching the target of 70,000. We aim to achieve this during H1 2024

3 – Commitment to provide unparalleled access to debt and equity: Excluding BBLS, CTTB commit to £200m funding (cumulative flow of commitments) by end 2022 across intermediated and proprietary credit as well as the debt and equity managed services networks.

Completing with over £200m cumulative flow of commitments provided.

4 – Commitment to support digital payments and business development: CTTB will upgrade our payment functionality to incorporate a) request to pay, b) confirmation of payee and c) digital cheques. For B2B members, CTBB will create and curate a digital member directory.

Completed with roll-out of Confirmation of Payee (CoP) inbound and outbound, Request to Pay and Digital Cheques and The Digital Member Directory has been launched, which will allow members (optionally) to create online public profiles and get introductions to other Tide businesses.

5 – Commitment to raise awareness: CTBB is committed to spending at least £11m of the grant and own funds contribution by end 2022 on marketing.

Completed with £11.7m spent in Total on Marketing.

6 – Commitment to opportunities for partners: CTBB commits to integrate at least 25 SME solution partners by 2022.

Completed with 25 solution partners successfully integrated.

7 – Commitment to diversity and inclusion: CTTB commits to target at least 35% of women in senior leadership roles by end 2022 and onboard at least 50,000 female and 20,000 BAME entrepreneurs by the end of 2022

Completed with ClearBank having over 35% of its senior leadership roles filled by females by the end of the Grant period and CTTB successfully onboarding over 50,000 female and 20,000 BAME entrepreneurs by the end of 2022

8 – Commitment to own funds contribution: CTBB is committed to supplementing the BCR award using our own funds to a value of at least 100% of the BCR grant

Completed with a total of c£26m Own Funds spent alongside the £25m Grant.