DECEMBER 2018 Business 41
Co-op Bank poaches
executive from CYBG
The Co-operative Bank has announced
the appointment of a new managing
director of its SME banking business.
Donald Kerr, who will take up the
role following regulatory approval, will
oversee the bank’s aim to significantly
grow its presence in the business
banking market.
He joins from Clydesdale and
Yorkshire Bank owner CYBG, where
was head of SME banking. Prior to that,
he spearheaded a phase of growth at
Lloyds Banking Group, where he held
MD roles in commercial finance and
SME banking.
The appointment follows The
Co-operative Bank’s aim to take a slice
of a new £750m fund designed to
bolster competition in the market.
The bank announced in early
November that it will apply to the
Incentivised Switching Scheme, which
forms part of the RBS alternativeremedies package, alongside
considering its options within the
Capability and Innovation Fund.
The Manchester-headquartered bank
currently looks after the banking needs
of around 90,000 SMEs, 700 co-
operatives, 5,000 charities, and 279
credit unions.
Kerr will join the business in early
2019 and report to chief executive
Andrew Bester.
“Our heritage in providing banking
services to small and medium sized
businesses together with our
recognised strong service culture
provides us with a great platform,” said
Bester.
“We want to significantly build on
that and drive greater competition in
the market using the strength of our
ethical brand which is the reason many
of our 90,000 SME customers choose to
bank with us.”With Christmas coming up, the
team at Growth Street has been
attending celebratory events
capping what’s been a really
significant year.
These get-togethers
underlined that the number
of advisors, funders and other
partners working with the UK’s
entrepreneurs is broader than
e v e r.
From brokers, to accountants,
to funders, business owners
have so many different ways
to access information and
guidance as to the best way to
grow their companies.
I think it’s great to be part
of such a tight-knit, inclusive
community of professionals
who care about the success of
Britain’s businesses.
But how much value does
this network really add to the
average business?
Several studies have shown
that for a long time, the main
relationship for the average
small business is usually with
their high-street bank.
But is placing so much
importance on a single financial
relationship a good thing?
I think being exposed to a
diverse range of perspectives isincredibly useful.
For one thing, it stops any
single partner’s viewpoint being
the ‘default’. Contemplating
different ways of doing things
(whether it’s finance, operations,
HR or any other facet of a
business) is vitally important.
And in the last year, we’ve
seen a growing range of
companies trying to do just this:
open up access to a far wider
selection of services to business
owners. Challenger banks like
Monzo and Starling are building
marketplaces to connect
third-party apps with business
customers.
At the same time, aggregators
like Funding Options and
Alternative Business Funding
are giving entrepreneurs more
oversight of the wide variety of
finance products on the table for
their businesses.
Moving into next, I’m
energised by the thought of
these marketplaces taking
root and becoming more
widespread.
In my view, taking advantage
of an ecosystem - rather than
relying on a single relationship -
could set our businesses up for a
successful 2019.Businesses need an ecosystem, not a single relationship,
writes Greg Carter, CEO of Growth Street