Fairer Finance, a UK-based consumer group and ratings provider, has introduced rankings for business bank accounts to support small businesses.
The group now evaluates over 30 product categories, including banking, insurance, and credit products, according to a press release issued Monday (Jan. 20).
These new rankings aim to simplify the selection process for entrepreneurs, which can often feel overwhelming, said Managing Director James Daley.
“Our new product ratings are designed to provide a shortcut for entrepreneurs — helping them get a handle on which accounts will prove the best value,” Daley said. “Firms will still need to do some extra work to understand which accounts meet all of their needs. But hopefully these ratings will make that process quicker and easier.”
The ratings assess both benefits and costs, including fees that may emerge over time. To earn a five-star rating, accounts must deliver essential features, remain competitively priced, and have reasonable fees. Fairer Finance awards its highest rating to no more than 15% of products.
The group segments its rankings based on typical account usage: high-frequency cash accounts, low-frequency cash accounts, and cashless payment accounts.
“Our goal is to encourage better competition and transparency in this market, driving banks to innovate and to support small businesses to reach their potential and help drive economic growth,” Daley added.
Recent data highlights challenges for UK small businesses. In February 2024, the Treasury Committee reported that major banks closed more than 140,000 business accounts in the prior year, affecting 2.7% of small business accounts. Banks cited reasons such as financial crime concerns, risk appetite, and limited information sharing.