Financial Services: Competition

Lord Holmes of Richmond Excerpts

Thursday 22nd October 2015 Lords Chamber

Asked by

[Lord Holmes of Richmond]

To ask Her Majesty’s Government, in the light of the Competition and Markets Authority’s investigation into personal current accounts and banking services for small and medium-sized enterprises, whether they intend to support further the financial technology sector in providing greater competition across financial services.

[Lord Ashton of Hyde (Con)]

My Lords, the Government are committed to improving competition in financial services and welcome technological innovation that incentivises firms to provide the best products and services to customers. The UK is already a global hub for financial technology—fin-tech—and our ambition is to make the UK the global hub for fin-tech. We have already taken a number of steps to achieve this and we continue to look at ways to support this exciting sector.

[Lord Holmes of Richmond (Con)]

My Lords, alternative finance is, indeed, a great British success story. We have a real opportunity to close the finance gap which has held back small and medium-sized enterprises for decades. I congratulate the Government on what they have done so far in this area, and ask my noble friend what more they will do to ensure that small and medium-sized enterprises are aware of the full breadth of finance options available to them.

[Lord Ashton of Hyde]

My Lords, to support the development of diverse finance markets for smaller businesses, the Government have established the British Business Bank, which brings together new and existing schemes into a single, commercially minded institution. The Chancellor also announced the launch of the Business Banking Insight survey. This will help the UK’s SMEs to understand their options, make decisions about who they should bank with and plan how they will finance their growth. Lastly, the Federation of Small Businesses survey found that more SMEs reported that credit was affordable and available than at any time since 2012.