London Daily

Focus on the big picture.
Friday, Nov 06, 2026

Analysis: UK businesses mull moving cash after SVB chaos

Analysis: UK businesses mull moving cash after SVB chaos

British banks are seeing a pick-up in enquiries to switch cash between institutions after the collapse of U.S. tech lender Silicon Valley Bank, as contagion fears prompt some depositors to try to figure out the safest harbours for their funds.

One of the country's biggest lenders, Barclays (BARC.L), told Reuters it had seen an increase in enquiries to switch or open business accounts in the past few days. Virgin Money (VMUK.L), Britain's sixth largest bank, said in a statement it had also seen "net business deposit inflows in recent days".

SVB's failure has roiled global markets over the past week, with contagion concerns spreading to Swiss lender Credit Suisse, forcing the country's central bank to shore up its liquidity on Thursday in a move that brought some respite.

The British government and the Bank of England have said the country's banking system is safe, sound and well capitalised, while the UK arm of SVB was rescued by Europe's largest bank HSBC on Monday. That means SVB UK's customer deposits are safe and their loans supported, HSBC's top bosses have said.

But the collapse of the Californian bank has drawn additional scrutiny of the safety of uninsured deposits above an 85,000 pound guarantee granted to licenced banks in Britain, particularly for businesses, as they are more likely to have larger deposits.

Sam Franklin, CEO of recruitment platform Otta, which has around 70 full-time employees, said the crisis had impacted the way smaller startups thought about their finances.

Franklin told Reuters a number of CEOs and startup execs had started researching other banks with which to park cash in addition to SVB UK this week, citing Barclays as a favourite among some.

"We're all going on this learning journey together. We're all looking for banks with great backing, strong brands, and solid track records," he said.

The founder of banking platform Griffin, David Jarvis, said he is in a WhatsApp group of over 200 fintech founders, of which dozens have started the process for opening new bank accounts following the collapse of SVB. He said the people were "mostly looking at the big clearing banks".

Russ Shaw, founder of startup industry body Tech London Advocates, told Reuters he would advise startups to spread their capital between different bank accounts as a matter of course. "I suspect many learned this weekend about the risk of not doing this," he said.


SPREADING MONEY AROUND


Rapid interest rate rises by the Bank of England over the past 15 months had already spurred greater competition among lenders for depositors, with smaller players gaining the upper hand as they were quicker to raise rates on products.

But the collapse of SVB has intensified scrutiny of the business models of all lenders, including specialists with smaller balance sheets to fall back on.

John Cronin, banking analyst at Goodbody, said deposit migration would continue to be a key focus for analysts and investors.

"While the issues that SVB experienced were very much institution-specific, it has raised generalised concerns around the health of bank balance sheets," he said, adding that some specialists may actually be less exposed as they rely mainly on consumer deposits.

"Lots of companies will take the time to think more carefully about how they position themselves financially in the future," said Dom Hallas, executive director at Coadec, an organisation representing UK tech startups. "But I think it's too soon to tell who the winners and losers will be."

Sources at three specialist and online lenders said they had seen inflows of business deposits in the past few days, declining to be named citing the sensitivity of the situation.

Digital banking platform Revolut saw a 5% increase in new sign-ups from businesses, particularly larger companies, last week compared to previous weeks, and a "substantial increase" in overnight balances, a spokesperson said.

The company - which has applied for a banking licence in Britain but is not yet protected by the government's deposit guarantee - said it was not able to share figures for this week.

Revolut's customers in the EU are protected by the euro zone's 100,000 euro guarantee, the spokesperson said.

Several British banks focused on retail products such as consumer savings said they had seen no change in customer behaviour since the collapse of SVB, adding that the vast majority of customer balances sat well below the 85,000 pound government guarantee and were therefore protected.

"We have had no concerns from our customers," a spokesperson for Metro Bank said. "The UK banking system remains safe and continues to operate as normal."

Newsletter

Related Articles

0:00
0:00
Close
High Court Rules in Favor of Comprehensive Transparency Review Regarding Government Artificial Intelligence Procurement Contracts
Home Office Expands Digital Border Security and Electronic Travel Authorization Systems Across International Arrivals
Scottish Government Confirms Accelerated Investment in Offshore Renewable Energy Infrastructure Across North Sea Corridors
Department for Environment Food and Rural Affairs Implements Stricter Water Company Oversight and Environmental Penalties
National Health Service England Unveils Emergency Winter Resilience Package to Tackle Acute Accident and Emergency Backlogs
Office for National Statistics Reports Gross Domestic Product Growth Stagnated at Zero Point One Percent in Third Quarter
Chancellor of the Exchequer Outlines Comprehensive Fiscal Strategy to Stabilize National Borrowing and Public Spending
Bank of England Maintains Base Interest Rate at Five Percent Amid Persistent Service Sector Inflation Pressures
Office for National Statistics Reports Stable Consumer Confidence and Modest Retail Growth Heading into Winter
Welsh Government Launches Strategic Regional Transport Initiative to Modernize Rail Links Across South Wales
Home Office Expands Digital Border Security Controls and Electronic Travel Authorisations for Inbound Visitors
Scottish Government Announces Emergency Housing Investment Package to Tackle Urban Homelessness Crises
Northern Ireland Executive Reaches Bipartisan Consensus on Public Sector Pay Reform and Budget Allocations
Automotive Manufacturing Sector in the West Midlands Welcomes New Electric Vehicle Supply Chain Investments
Department for Energy Security and Net Zero Approves Offshore Wind Expansion in the North Sea
HM Treasury Finalizes Regulatory Framework for Stablecoins and Digital Asset Markets in London
National Health Service Unveils Comprehensive Digital Integration Strategy to Slash Hospital Waiting Lists
Bank of England Leaves Interest Rates Unchanged Amid Persistent Wage Growth and Inflationary Pressures
United Kingdom and Caribbean Nations Agree to Establish Formal Diplomatic Dialogue Following Reparations Discussions
Cambridge University Appoints Senior Barrister to Lead Independent Review into Death of Academic Jason Arday
Historic Hastings Castle and Kent Dickens Chalet Added to National Heritage at Risk Register Amid Deterioration Concerns
Incoming British Ambassador to Japan Calls for Deepened Bilateral Cooperation on Artificial Intelligence and Semiconductors
Milburn Review Urges Employment Revolution to Unlock Workforce Opportunities for Young Disabled Britons
British Healthcare Worker Evacuated from Democratic Republic of Congo to United Kingdom Following Ebola Exposure
United Nations Refugee Agency Criticises Government Proposal for Thirty-Year Earned Settlement Pathways for Asylum Seekers
Parliamentary Inquiry Warns United Kingdom Remains Exposed to Chinese Critical Mineral Dependencies
Bank of England Prepares Interest Rate Decision as Inflation Pressures Prompt Expectation of Four Percent Benchmark
Department for Business and Trade Overhauls Protection Standards for Digital Animation and Moving Image Files
Intellectual Property Office Introduces Thirty-Month Grace Period for International Product Launches
Intellectual Property Office Targets Anti-Competitive Filings With New Powers to Verify Novelty Before Registration
Creative Industries Minister Ian Murray Praises Regulatory Reforms to Safeguard Small Businesses and Micro-Enterprises
Government Unveils Major Design Framework Overhaul to Protect British Creators and Boost Economy
Global Asset Management Reports Surge in British Dividend Payouts Driven by Strong Financial and Mining Sectors
HM Treasury Confirms Strongest Group of Seven Growth Figures as Fiscal Consolidation Plans Progress
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
×