The Economic Secretary to the Treasury (Andrea Leadsom)
In March 2014 the Government published a consultation, “Speeding up cheque payments: legislating for cheque imaging”, which set out proposed legislation for the introduction of cheque imaging in the United Kingdom. Cheque imaging is an innovation that speeds up cheque clearing times through the sending of a digital image of the cheque for clearing, rather than the original paper instrument itself. Cheque imaging enables a wide range of benefits to be delivered to consumers, businesses and the banking industry. It will speed up clearing times, increase customer convenience, deliver operational efficiencies and help challenger banks to compete with incumbents.
Separately in December 2013 the Government published a consultation, “Competition in banking: improving access to SME credit data” which set out its proposal to require banks to share information on their SME customers with other lenders through credit reference agencies. The proposals will help small businesses access the finance they need to grow by opening up access to the credit data that the major banks hold on their SME customers to other banks and finance providers. The proposals are intended to make it easier for SMEs to seek loans from a lender other than their bank by improving the ability of challenger banks and alternative finance providers to make accurate SME risk assessments and lending decisions.
The Government are publishing responses to both consultations today, alongside introducing legislation in the Small Business, Enterprise and Employment Bill to allow for the introduction of cheque imaging in the UK and to improve access to SME credit data.
I am placing copies of these documents in the Libraries of both Houses.