Responding to proposals from the Competition and Markets Authority to give business customers better information about banks, Jimmy McLoughlin, Head of External Affairs at the Institute of Directors, said:
“Access to finance remains a concern for many small and mid-sized firms, and despite the rapid rise of alternative finance, banks are still major players. Creating more transparency around the quality of service offered by banks is welcome, allowing business owners to make better-informed decisions about their finance choices.
“Perhaps the most exciting of the CMA’s remedies is the focus on the value of data as a way of opening up the market to greater competition, allowing for more accurate comparisons between potential lenders. The information revolution offers huge opportunities to harness the power of data, and it is welcome the watchdog is recognising its potential.”
“While the proposals will not go far enough for some, we have to recognise that the banks have gone through a dramatic period of restructuring in the light of the financial crisis. Businesses are obviously frustrated when they are turned down, but it isn’t surprising that banks have changed their lending practices in response to pressure from regulators.