Branch closures, slow service, and blocked accounts leave owners frustrated and financially vulnerable
When Peter Burrows opened the Conservatory Cafe in the quiet village of Killinchy, he wasn’t expecting his biggest hurdle to be his own bank. But that’s exactly what happened—twice. In six years, his business account was suspended twice, the first time for a reason that still baffles him. The disruption lasted three full weeks.
“I was just getting going,” Burrows said. “They asked for an annual return when I’d only been trading ten months. It felt like they didn’t even look at the paperwork properly. Suddenly, I couldn’t access any money.”
His experience isn’t unique. A growing number of small business owners across Northern Ireland are voicing their anger over what they see as a shrinking and increasingly bureaucratic banking system that’s failing to support local commerce. And they say it’s getting worse.
Fewer Branches, Fewer Options
Walk through towns like Dungannon, Coleraine, or Newtownards, and the signs are everywhere—literally. “This branch is now closed” has become a familiar notice on high street windows.
In the past decade, Northern Ireland has lost more than 60% of its bank branches.
And that means more than just inconvenience. For small businesses, it’s meant longer waits for assistance, higher costs, and the loss of face-to-face help. The Federation of Small Businesses in Northern Ireland (FSB NI) recently surveyed over 300 of its members. The results paint a troubling picture:
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56% said banking had become less accessible in the past three years
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42% said branch closures had negatively affected their business
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36% reported feeling “unsupported” or “ignored” by their bank
Growth Held Back by Bureaucracy
For Burrows, getting back online wasn’t simple. It required days of phone calls, piles of paperwork, and no less than three different customer service agents.
“They kept saying they were checking something, but wouldn’t tell me what,” he said. “Meanwhile, suppliers were asking for money. I couldn’t even pay a £60 gas bill.”
New businesses are facing an even steeper climb. According to the FSB’s report, newer firms—those in their first two years—are the most likely to be turned down for business accounts or credit lines. One bank declined a Belfast-based digital printing startup last month, citing an “insufficient trading history,” despite verified pre-orders and a six-figure investment.
That, the FSB warns, could be holding back Northern Ireland’s post-pandemic economic recovery.
One sentence, because it’s enough: Some owners say banks are treating them like suspects, not clients.
More Time on the Phone Than at the Counter
Banking used to be simple. Walk in. Talk to someone. Get something sorted. Not anymore.
With phone and online services replacing branches, even basic requests—like updating a signatory or reporting a fraud concern—can stretch out for weeks. A Newry-based florist, who asked not to be named, described calling her bank seven times to correct a billing error. It took a month.
One owner in Enniskillen summed it up like this: “It’s like yelling into a void. You never get the same person twice, and nobody seems to have the full picture.”
At the same time, many banks have touted AI-driven “digital solutions” as replacements for in-person service. Business owners aren’t buying it.
Here’s what they really want from banks:
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Consistency: The same adviser for repeat queries
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Clarity: No more vague policy explanations
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Speed: Faster account verifications and transaction dispute resolutions
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Presence: At least one nearby branch with knowledgeable staff
Banking Friction by the Numbers
Let’s break down how small business owners rate their banking experience across three key categories.
| Category | Satisfied | Dissatisfied | Neutral |
|---|---|---|---|
| Accessibility | 32% | 54% | 14% |
| Communication Clarity | 29% | 49% | 22% |
| Business Support Tools | 35% | 45% | 20% |
That’s not a glowing report card—and many say it’s getting worse, not better.
Costly Delays, Emotional Strain
Beyond the practical setbacks, there’s an emotional toll. Businesses often operate on tight margins. Delayed payments or blocked accounts can lead to missed payrolls, lost stock, and frayed relationships with suppliers. One Derry café lost £3,000 in stock during a bank freeze caused by an unexplained “compliance review.”
Others talk about lost sleep.
“There’s this feeling of helplessness,” Burrows said. “Like, ‘I’m doing everything right—why can’t I access my own funds?’”
For some, that helplessness turns into fury. A bakery owner in Ballymena who had her merchant account closed without warning called the process “utterly infuriating.” The bank cited a change in risk profile but offered no documentation.
Banks Say “We’re Modernising”—But Are They Listening?
In response, major banks say they’re streamlining. A spokesperson for a leading UK lender stated that their “digital-first” approach aims to “deliver secure and efficient service to all clients.”
That’s not reassuring for those who just want to talk to a person.
“Modernisation shouldn’t mean abandonment,” said Roger Pollen, Head of FSB NI. “Small firms form the backbone of our economy. If banks aren’t prepared to support them, who will?”
Banks may argue they’re evolving. But for hundreds of businesses like Burrows’ café, it feels more like they’re just being left behind.
