There is growing anger among small businesses in Northern Ireland. They experience decreased banking access from branch closures and the inability to maintain accounts that break up their business. Clodagh Rice, business correspondent for BBC News NI, found that suppliers are beginning to lose faith with those businesses unable to work within their suppliers’ seven-day payment cycle. This change is adding to the revenue pressure on those firms.
At the moment, Northern Ireland is home to about 115 bank branches as well as around 480 Post Offices offering banking services. Yet the banking hub pilot program—only six hubs in total—has further worsened the accessibility struggle for small business owners. They have reported a noticeable decline in the services offered by banks due to closures, leading to further complications in managing their finances.
As a result, local businesses like Peter Burrows’ Conservatory Cafe in Killinchy, County Down are better connected. Tlved face any large surprises like when his bank account was frozen twice within only 6 years. Wrongly suspended for three weeks. It was a dramatic turn after a mere ask for an annual accounting, given that Burrows had only been active as a member for ten months. The second suspension came when he failed to report an overseas complication with his state pension.
Burrows’ experience is a microcosm of what small business owners are dealing with across the southeast. He expressed concern regarding the banking industry’s approach to customer service, stating, “I think the banks have to be compliant with the Financial Conduct Authority, but it is a box-ticking exercise for them.” He added, “They don’t care whether it’s little old me and they use this hammer to get it done.”
As Alan Lowry, Chair of FSB NI, pointed out, it’s crucial for banks to be seen as “trusted partners” in the world of finance. He stressed that cash flow is essential for small businesses, noting, “People know banking from their own personal point of view, but for a business that really is the lifeblood; cash flow for any small business is so important.” Lowry further elaborated on the pressing issue, stating, “That’s the problem – at the minute, they aren’t being seen as that trusted partner.”
The obstacles small business owners run into are more than just a personal problem. As Lowry noted, these banking barriers are preventing the economic boom from reaching the entirety of Northern Ireland. He remarked, “Money in, money out, and being able to manage that in a really good way and the services you need,” are vital for businesses to flourish.
“As David Raw of the Rawls Group added, too many small businesses are existing and not living. “We want to see our small businesses thriving, and at the minute most of them are just surviving,” he stated. Raw noted that the market is competitive, with over 4,000 banks in the country providing business services. Yet, even with such progress, millions remain understandably unhappy with the status quo.”
The negative impacts of this loss of banking services on small businesses in Northern Ireland are both stark and serious. As branch closures continue and account management issues arise, small business owners increasingly seek reliable financial partners to support their operations. Without strengthening accessibility and quality of service, many will fail to meet the evolving needs of their communities or provide as easy a path toward building wealth.
