London Daily

Focus on the big picture.
Thursday, Jan 08, 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
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
×