Santander Bank has sparked a firestorm of customer—and would-be customer—anger. In a move that shocked users, they announced plans to begin charging for previously touted as “free for ever” business accounts. Beginning in October, customers with these accounts will be charged a monthly fee of £9.99. The bank is deeply focused on making its business banking more clear cut and straightforward. This decision is in line with a larger movement within the company to sustainably innovate and better serve its clients’ evolving needs.
Santander’s cantankerous history with its small business accounts goes back to 2004 when it bought Abbey National. The bank eventually converted Abbey National, Bradford & Bingley, and Alliance & Leicester into Santander in 2010. The introduction of the “Free Banking Forever” promise was a major customer acquisition stroke of genius. In 2012, Santander was forced to backtrack after widespread criticism on plans to charge for customers’ accounts. Consumers threatened lawsuits, which pushed the bank to back down on its scheme.
Jennifer Iles, who signed up for the service based on its promises, expressed her discontent over the recent policy change. “I objected when Santander tried to impose monthly charges in 2012,” she stated.
Back in 2005, that small business owner, Dave Lawrence, decided to open his business account. He’d gotten it in writing that he was eligible for the Free Banking Forever tariff. This contract promised him he would “never pay an expensive banking fee ever again.” When Lawrence took stock of what happened, she wondered how a bank could behave this way. “If I had originally signed up to a business bank account that cost £9.99 a month that would have been my choice, but I opened the account with the promise in writing of free banking for ever,” he said. He further added, “Which part of forever do Santander think doesn’t apply now, and how can they justify introducing charges given their pledges to the contrary?”
The decision to introduce charges represents a cultural change in how Santander intends to operate as a business bank. Santander withdrew Free Banking Forever accounts from new customers in 2011. In 2015, they retroactively moved accounts that had existed before their 2008 merger back into the Business Every Day account. The terms and conditions of these accounts expressly removed the “free for ever” pledge. Thousands of legacy customers were tricked into thinking it was part of the package.
The bank’s goal is to make its small business banking easier to use. This plan is in direct opposition to the expectations it set forth when it made previous promises. As Santander moves forward with this initiative, customers are left wondering how the bank will address their concerns while maintaining its commitment to service quality.