Our regular digest of the most salient news and opinion on consumer credit, lending and regulation.
Launching a FinTech in the United Kingdom | The City UK | 03.10.18
This Allen & Overy Report, supported by the TheCityUK, gives guidance to those wishing to launch a fintech business in the UK. The report gives an overview of the current environment – which is seen as favourable to new financial technology businesses thanks to a combination of government support and a technically sophisticated workforce in addition to the presence of London as a financial capital. The report contains advice on regulatory considerations, employment contracts, data protection, intellectual property, and tax among other things.
Slowdown in growth of consumer credit | Credit Strategy | 02.10.18
Bank of England statistics show that there is a slowdown in the growth of consumer lending compared to much of the past two years. This can also be seen data reflecting in the net balance of banks reporting a rise in credit card loan applications being approved in our Consumer Credit Overview. In this article Credit Strategy reports that despite this trend, in August there was an increase up from £0.8 billion in July, in net new consumer borrowing.
Inaugural Lending Awards shortlist announced | Credit Strategy |03.10.18
The very first Lending Awards, will take place on 8 November at Hilton London Bankside. The 30-category strong shortlist aims to recognise success in consumer, corporate and commercial lending. Categories include Alternative Consumer Lender of the Year, Customer Service Excellence – Alternative Lending, and Best Mainstream Mortgage Lender, among others. Well done to all of those who have been shortlisted.
RBS boss says ‘bad Brexit’ could tip UK into recession | The Guardian |04.10.18
CEO Ross McEwan admits that RBS has already become more cautious in lending to certain sectors, such as retail, and says that if the UK crashes out of the EU without a deal, then growth in the economy could slow down to recession levels. Already in 2018, the British high street is experiencing a number of retailers running into financial difficulties – and – this suggestion by Mr McEwan will do nothing to further ease the tensions of this business vertical.
The FCA consults on its approach ahead of the UK’s exit from the EU | The FCA |10.10.18
It may be that in March 2019, the UK leaves the EU without an implementation period. The FCA has published two consultation papers which set out its proposals, in the event of this happening. In addition, it outlines its approach to the regulation of Credit Rating Agencies, Trade Repositories and Data Reporting Services Providers. The proposals are intended to ensure the UK has a robust regulatory regime in the event of a no-deal Brexit, and to ensure a smooth transition for EEA firms and funds currently passporting into the UK.