28 June 2017
visit www.finastra.com

UK regulators set up unit to help bank startups

20 January 2016  |  7044 views  |  0 Man drawing Graph on Glass wall 2

Britain's financial watchdogs have set up a unit designed to help the country's slew of new challenger banks navigate the regulatory waters and win approval to take on the high street giants.

In the wake of the 2008 financial crisis, the government has pushed to create competition in the UK retail banking market, which has long been dominated by a handful of too-big-to-fail behemoths.

In the last couple of years, a host of new digital challengers, such as Atom, Starling, Mondo, Tandem and Secco, have emerged but the process of winning a license and then navigating the regulatory landscape in one of the most highly policed industries in the country is daunting.

In a bid to help new entrants, the Financial Conduct Authority and Prudential Regulation Authority are both contributing staff to a 'New Bank Start-up unit' which has a standalone website, telephone number and email address and will provide information and materials new banks need to navigate the process to launch, as well as resources during the early years of authorisation.

Startups will get named case officers during the authorisation process, access to a helpline, regular capital and liquidity reviews (if appropriate), monthly update emails, and invitations to seminars and events.

Andrew Bailey, CEO, PRA, says: "The New Bank Start-Up Unit builds on the work we have already done to reduce the barriers to entry for prospective banks, which has led to twelve new banks now authorised since April 2013. These new banks are a key part of bringing innovation to the sector, particularly where there is a gap in the market - whether it is the service they provide, the customers they target, the products they sell or the technology they use.

"With the launch of the New Bank Start-up Unit, applicants will now benefit from having a single place where they can get the advice and guidance they need to start a new bank and support once they are authorised."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Starling secures $70 million investment

Starling secures $70 million investment

11 January 2016  |  9340 views  |  0 comments | 20 tweets | 9 linkedin
Atom Bank to launch with face and voice biometrics

Atom Bank to launch with face and voice biometrics

16 December 2015  |  14113 views  |  0 comments | 35 tweets | 33 linkedin
Challenger banks boosted by UK Government

Challenger banks boosted by UK Government

01 December 2015  |  6246 views  |  0 comments | 22 tweets | 10 linkedin
Mobile-first Tandem gets UK banking license

Mobile-first Tandem gets UK banking license

01 December 2015  |  11144 views  |  0 comments | 28 tweets | 21 linkedin
Atom chief launches ferocious assault on 'dinosaur' banks

Atom chief launches ferocious assault on 'dinosaur' banks

13 November 2015  |  12661 views  |  10 comments | 30 tweets | 31 linkedin
Challenger tech platform Agiliti signs first client

Challenger tech platform Agiliti signs first client

26 October 2015  |  4447 views  |  0 comments | 8 tweets | 8 linkedin
UK challenger OakNorth Bank signs for Mambu core platform

UK challenger OakNorth Bank signs for Mambu core platform

22 October 2015  |  4900 views  |  0 comments | 4 tweets | 3 linkedin
UK banking revolution begins as Fidor opens for business

UK banking revolution begins as Fidor opens for business

18 September 2015  |  18488 views  |  1 comments | 58 tweets | 42 linkedin
UK challenger Secco vows to reboot banking

UK challenger Secco vows to reboot banking

15 September 2015  |  12003 views  |  2 comments | 21 tweets | 9 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.www.fisglobal.comdownload the report nowvisit vasco.com/news/PSD2-compliant-solutions

Top topics

Most viewed Most shared
ECB preps eurozone-wide instant payments serviceECB preps eurozone-wide instant payments s...
9244 views comments | 19 tweets | 37 linkedin
ABN Amro tests wearable tech for contactless paymentsABN Amro tests wearable tech for contactle...
8808 views comments | 10 tweets | 6 linkedin
hands typing furiouslyThe EU and blockchain: taking the lead?
7594 views 0 | 8 tweets | 7 linkedin
Asia still top dog for payments innovation but Europe gaining groundAsia still top dog for payments innovation...
7533 views comments | 10 tweets | 9 linkedin
Mastercard eyes opportunities to profit from sharing economyMastercard eyes opportunities to profit fr...
7112 views comments | 6 tweets | 6 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job