News Article

Sector Analysis

Shake-up of banking sector welcomed

By CreditMan Wednesday, November 18, 2009

News that troubled banking giants Royal Bank of Scotland and Lloyds Banking Group will have to sell off parts of their branch network to new players in the industry has been welcomed by the UKs leading association of quality assured independent small and medium-sized accountancy and lawyer firms.

Kevin Dickens, senior partner at Howard Worth accountants and president of the UK200Group of accountancy and lawyer firms said the small business clients represented by the associations member firms would benefit from new sources of lending, potentially offering better rates and improved customer service.

He added: Many of our members small business customers are still experiencing far too much difficulty in accessing the finance they need, and that is harming their ability to lead the UK out of recession.

I think some of the aged monoliths of the High Street have perhaps had their day, and the indication of potentially more competitive banking can only be a good thing.

Many small businesses will look forward to the likes of Tesco Banking or Virgin Banking, and possibly others, shaking up the High Street and if as a result of that small and medium-sized businesses have a more competitive marketplace in which to access finance, that can only be a good thing.

None of these new players will come into the market to lose money they will arrive believing they can compete strongly and could provide quite a jolt to the existing players, not just Lloyds and RBS.