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Tide Digital Challenger Bank has supported calls for a judicial system that allows small businesses to settle their disputes with their lenders, while noting that increased competition in the banking sector would further contribute to the protection of banks. companies.
This comes after the influential Treasury Board has recommended the creation of a financial services tribunal with enhanced powers to allow small and medium-sized enterprises (SMEs) to obtain redress if they have been dealt with. unfairly, but were rejected by the government.
He prefers an ombudsman-type approach rather than a court to resolve disputes.
Oliver Prill, managing director of Tide, a bank specializing in SMEs, told The Press Association that he was in favor of further regulation of the SME credit market, including at a court, but that it was not the case. heightened competition would solve many problems in the banking sector.
We are very open to the regulation of loans, we are very open to the idea of a court. The only thing we say, make it very pragmatic, right? And, you know, make it compatible with digital
Oliver Prill, CEO of Tide
"We are very open to the regulation of loans, we are very open to the idea of the court.
"The only thing we say is that it's very pragmatic, right? And, you know, make it digital.
"But beyond that, I think, if that's what you need, you know, act on it … but also think about making the market more competitive because you do not have to." would not have as many problems initially. "
Calls for greater regulation of SMEs follow the scandals of the Royal Bank of Scotland and HBOS following the financial crisis.
The now-defunct Global Restructuring Group (GRG) of RBS has been accused of pushing small businesses into failure to recover cheap badets.
While the fraud at the HBOS Reading branch, acquired by Lloyds, had led to the conviction of corrupt financiers at more than one scam of an amount of 245 million pounds which destroyed several businesses.
Prill said the threat of losing customers would encourage big banks to treat their customers fairly, but few SME customers changed lenders.
"The [banking] The oligopoly in particular … can get away with this kind of behavior without the SME clients leaving them mbadively – not to mention those who are affected, but those who say "ah, well, that's how it is that they are dealing with other SMEs, I'd better move on "before they treat me like that".
"Given that this does not happen, it is clear that an intervention is needed and I say, you know, if the intervention is at a level where it does not interfere with commercial activities.
"But things like, you know, a court, why not? If that's what it needs to overcome this market hurdle, but we would strongly plead to do all this, but at the same time, make the market more competitive, because all banks would thus be truly incentivized not to to behave in this way, they lose customers. "
In an effort to boost competition in the banking sector, RBS has launched a set of alternative corrective measures, which is part of the terms of its government's £ 45 billion rescue package ten years ago.
Tide has partnered with ClearBank to bid for a share of the fund for capabilities and innovation that is part of the package. The winners of the first round must be announced at the end of February.
The company, created in 2015, is part of a multitude of exclusively digital banks that have opened their doors in recent years in order to gain market share from major artisans.
It has more than 60,000 customers and currently accounts for 1.1% of the SME market.
Tide hopes that if it succeeds in obtaining the RBS grant, the company will be able to increase its market share by up to 10% to 16% in five years.
Press Association
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