The announcement this am that the UK Government is supporting tech startups with up to £1.2Billion is great news, and as I predicted last week, matches the existing approach used by the BCR, the Banking Competition Remedies Scheme. That scheme albeit still
in its early days is showing real results amongst its fintech participants.
This scheme announced this morning however does not address the short term cash flow issues that many businesses will face next week, in 4 just day's time.
Andrew Bailey threw his hat into the ring last Friday in support of a 100% Government-backed loan scheme. This scheme should support short term cashflow and not attempt to replicate the welcome investment capabilities of the scheme announced this morning.
Over the weekend a proposal to deliver that scheme this week from by the industry was delivered to H.M. Treasury. Following the 2007/6 global financial crisis, the UK government has encouraged the establishment of a competitive financial services marketplace.
These new entrants are digitally savvy and are capable of operating in a highly efficient manner. Many hold the same permissions as the historic banks, with Central Bank capabilities at the Bank of England and I hope that HM Treasury embraces this digital
distribution opportunity, now.
We face a growing economic tsunami, which will arrive shortly, and actions to help flatten that wave are need today.