CEO Sam O'Connor reveals Coconut as the 4th fintech to file a bid for part of Banking Competition Remedies £100m fund.
Business banking platform Coconut has filed a bid as part of the BCR's £100m package of Pool E funding, AltFi can exclusively reveal.
Coconut's bid went in at the end of last month as part of the application window for pots worth £2.5-5m, funding that CEO Sam O'Connor says would be used to further commercialise its accounting service offering.
“We’ve seen first-hand just how limited the financial services offering is for the UK’s 5.3m self-employed and micro-SMEs in the UK," said CEO and co-founder Sam O’Connor.
"Despite the growth of challenger banks, only 3% of businesses switch accounts each year and branch closures are reducing the relationship between banks and business owners. What’s more, 73% of small business owners say they only use their bank for transactions. In my view that has to shift.”
The BCR's Pool E pot is to redistribute £50m returned by both Metro Bank and Nationwide after the duo both failed to reach their earlier targets. The cash is being redeployed in 10 pots worth between £2.5m and £35m.