What the FCA’s savings push means for SMEs and their cash

Why SMEs should pay attention to calls for fairer savings rates

Small and medium-sized businesses (SMEs) play a vital role in the UK economy — but when it comes to savings, they often face an uneven playing field. Recent commentary from The Times and updates from the Financial Conduct Authority (FCA) have renewed focus on how banks treat SMEs, particularly around fairness and transparency in savings rates.

Historically, banks have been slow to pass on base rate increases to savers — and SMEs, like individuals, have seen limited benefit from the recent higher interest rate environment. In response, the FCA launched a cash savings action plan in July 2023, urging banks to:

• Improve transparency on savings rates
• Communicate more clearly with customers
• Ensure fairer treatment of both individuals and SMEs

Some banks have responded with improved offerings, but there is still work to do — particularly when it comes to small businesses.

Why now is a good time to review your cash strategy

Following the November 2023 Monetary Policy Committee meeting, the Bank of England confirmed that the UK base rate would remain at 5.25% — a 15-year high. Governor Andrew Bailey noted that it’s “much too early to be thinking about rate cuts,” indicating that these elevated rates may be here for a while.

For SMEs, this means there’s an ongoing opportunity to generate meaningful returns on cash — especially when savings are managed proactively.

How a cash management platform supports SMEs

Time-poor business owners often struggle to keep up with savings market changes. But tools like cash management platforms offer a practical solution.

A cash management platform allows SMEs to:

• View savings rates and terms across multiple deposit-takers
• Compare options in one place
• Select products that balance return with liquidity needs
• Diversify across banks and building societies to reduce risk

With the FCA spotlighting the need for better SME treatment, and interest rates still favourable, platforms like Insignis help small businesses take control of their savings — with added efficiency and visibility.

Looking ahead

The FCA’s efforts to ensure fairness for SMEs are an important step toward a more balanced financial system. But while regulatory pressure on banks is welcome, the biggest gains often come from proactive financial decisions.

Cash management platforms are empowering SMEs to seek out better returns, stay on top of their financial position, and build resilience in uncertain economic conditions.

‍