Tide, an SME-only digital challenger bank, has announced that its partner, ClearBank, has been awarded a grant from the RBS Alternative Remedies Package of £60 million.
With Tide providing the customer facing proposition, the partnership will use the award to challenge the oligopoly that dominates the UK business banking market
The funding will be focused on driving awareness of the Tide brand, overcoming switching friction, and creating extremely powerful reasons for customers not to default to the big four oligopoly that it claims has served SMEs so poorly
The grant is one of three from Pool A of the Capability and Innovation Fund that forms part of the £775 million package, backed by the UK Government, and overseen by Banking Competition Remedies Ltd.
Oliver Prill, CEO of Tide, comments: “Tide started operations in January 2017 with the mission to deliver a wholesale rethink of SME banking in the UK.
“The grant and our investment plans mean we will create a genuine challenger to the oligopoly that has dominated and failed the UK SME market for too long. We want to thank the BCR for the confidence they have shown in Tide and ClearBank which we intend to repay many times over.”
Charles McManus, Group CEO of ClearBank, said: “We both have the ambition to revolutionise banking services provided to the SME market. ClearBank is committed to improving SME outcomes in the UK by leveraging innovative partnerships with leading technology and financial services providers in accordance with our banking as a service model.
“Our partnership with Tide will provide the SME banking market with an innovative and compelling customer proposition, using our highly agile technology.”