Barclays Denies Bank Account to a British Defence Start-Up Despite Backing the Sector
UK Defence Startups Are Being Denied Banking Services Under ESG Rules
Eyebrook Technologies, a counter-drone start-up with £700,000 in funding and government support, was refused accounts by Barclays and other UK banks, which cited "the nature of your business." Analysts blame overzealous ESG screening and AML rules for debanking defence firms, even as ministers push for more defence spending. One founder only got an account after appealing directly to a bank's UK CEO.
It couldn't be any clearer the role that a functional defence industry plays in Europe in 2026, and it's incredibly misguided for banks to see that as a reputational risk.