Halifax Bank of Scotland (HBOS) is introducing a new range of small business services in what it hopes will pose a challenge to the Big Four banks' business-banking monopoly.
Over a thousand Bank of Scotland and Halifax branches across the country will provide services for small businesses by the end of this month.
Since January, HBOS has opened 123 new branches in England and Wales, which it claims enables it to serve the needs of 80% of the UK's small businesses.
All 700-plus Halifax branches will also offer a counter service to small businesses by the end of June.
HBOS has more than doubled its market share to 6% since the 2001 merger and said it hopes its current efforts win customers away from the Big Four banks, the Royal Bank of Scotland, Lloyds TSB, HSBC and Barclays, whose dominance has been investigated by the Office of Fair Trading (OFT).
"Business banking continues to be a sector where the Big Four banks have had it too good for too long," said Kevin Gillett, head of Bank of Scotland Business Banking.
"Our strategy of offering small businesses a better deal in branches will make life a lot harder for the Big Four Banks."
Gillett said the new service is aimed at businesses with a sub £1 million turnover who will be able to make daily cash withdrawals of up to £5,000 and use branch counters as a 'drop box' facility.
Earlier this year the Competition Commission investigated allegations from HBOS, Abbey National and Clydesdale Bank's parent, National Australia Bank, that the Big Four hold a monopoly over business banking. Ruling that a multifarious monopoly did exist, the Commission forwarded the matter to the OFT.
It is believed that the Big Four are currently in negotiations with the OFT to delay a shake-up to the current system, which it is assumed would come in the form of pricing restrictions.
