“We welcome the positive impact that a number of the CMA’s remedies will have, particularly those around transparency, the push for standardised information on switching and more comprehensive comparisons across SME products. However, some of the requirements have been cornerstones of the Aldermore offering for small businesses since our inception1.
“Two years in the making and following numerous other reports into banking competition, I’m left with the feeling that the CMA has missed a huge opportunity to provide a real, positive economic impact.
“We would have liked the CMA to have gone further faster to improve genuine competition in the market, particularly around capital requirements. The disadvantages faced by challenger banks in respect of disproportionate capital requirements relative to the largest banks remain a major issue for banking competition. This issue has been recognised repeatedly by the CMA and so it is very surprising that the organisation responsible for competition is not pushing for definitive action in this key area.
“In a post-Brexit world the effective provision of credit to smaller businesses will be essential to the economic competitiveness of the UK. In the last few years, it has been the challenger banks that have expanded their lending to this segment. We have been clear in our calls for the government to take a proportionate approach to the industry so that newer providers can continue to grow.
“With further pull-back possible in this uncertain economic environment, there is a very real danger that many SMEs will not have access to the banking services they need. SME banking is a vital part of the sector, and it needs a fair market.”
Monks continues: “Challenger banks are looking for no special treatment or favours, just a one size fits all approach. This will allow normal competitive forces to apply which, over time, should lead to greater diversity across the whole of the UK Banking market. We believe this has clear societal benefits and is in the best interests of the UK economy, consumers and SMEs.”
For further information, journalists can contact:
Andy Homer, Aldermore
Phone: 0203 553 4244
Mobile: 07931 492722
Notes to Editors:
1 Aldermore introduced a ratings and review service in 2013 allowing customers to leave unedited reviews on its website. In 2015, we also launched an SME rate checker which enables business owners to find out and compare their existing deposit rates from over 91 providers.
Aldermore Group PLC is a specialist lender and savings bank offering straightforward products to Small and Medium-sized Enterprises (SMEs), homeowners and individuals, who we believe are often poorly- or under-served by the wider market.
Aldermore has no branch network but serves customers and intermediary partners online, by phone and face to face through its network of regional offices located around the UK.
Building on its core values of being reliable, expert, dynamic and straightforward, Aldermore aims to deliver banking as it should be.
Established in 2009, Aldermore has grown significantly. At the end of March 2016, lending to customers stood at £6.5 billion and customer deposits totalled £6.2 billion.
For more information, please visit www.aldermore.co.uk.
Aldermore Bank PLC is an operating entity of Aldermore Group PLC. In March 2015, Aldermore Group PLC’s shares (ALD.L) listed on the Main Market of the London Stock Exchange.
Aldermore Bank PLC is regulated by the Prudential Regulation Authority and the Financial Conduct Authority and is registered under the Financial Services Compensation Scheme.