News

Edinburgh Reforms Welcomed By Challenger Banking APPG

Rt Hon Karen Bradley MP, Chair of the APPG on Challenger Banks and Building Societies has welcomed reports the Government plans to relax ringfencing of challenger banks.

The move, which was called for by the APPG in their recent report on Levelling Up, published last year, is a welcome step that will free up many smaller financial institutions from unnecessary regulation, boost the economy, and bring more competition into the UK’s banking sector.

Commenting on the steps being taken by the Treasury, Rt Hon Karen Bradley MP, Chair of the APPG on Challenger Banks and Building Societies, said:

“We called for a ‘Big Bang’ of financial services regulations in our Levelling Up report and it is great to see the Government has taken heed of the suggestions of APPG.  Reform in the UK is long overdue with most of the Big Six having held their dominant positions in UK banking for a century or more.  No other industry in the UK is characterised by such inertia.

“There is so much talent and innovation in the UK financial services sector outside the so-called ‘Big 6 banks’ that is held back by over-burdensome regulation restricting their ability to grow and complete.  The existing regulation effectively acts as a subsidy for big banks making competition impossible.

“This move will be welcomed by challenger banks,  building societies and especially mid-tier banking institutions.  However,  there is more that the Government can do as well and I would urge Jeremy Hunt and his team to take a close look at all our recommendations, from lifting the MREL threshold to introducing financial education at primary schools.”

ENDS.

Notes to editors:

• The APPG for Challenger Banks and Building Societies’ report on Levelling Up can be found on our website here – https://www.cbbsappg.org.uk/wp-content/uploads/2022/08/220830-CBBS-APPG-Levelling-Up-Report-1.pdf
• Reports about the Government’s plan to ease ringfencing on financial institutions can be read here – https://www.theguardian.com/business/2022/nov/30/uk-plans-to-relax-ringfencing-rules-on-banks-to-spark-brexit-big-bang

Allica Bank Becomes Latest Challenger To Join The APPG For Challenger Banks And Building Societies

The APPG for Challenger Banks and Building Societies is delighted to announce that Allica Bank is the latest challenger bank to join as an Associate Member of the Group.

The APPG is a cross-party group of MPs and Peers that seeks to inform parliamentarians about challenger banks and building societies , the issues and challenges facing them, and to promote competition and diversity within the banking sector.

Allica Bank is one of the UK’s top fintechs dedicated to serving SME businesses, with a focus on reimagining relationship banking for SMEs, by combining modern, powerful technology with local relationships in the community.

As the APPG’s latest Associate Member, Allica will be sponsoring the APPG’s Annual Reception which will be held in Parliament on Tuesday 29^th March 2022.

Allica will also be contributing to an exciting programme of work that the APPG has coming up in 2022, which will include taking a closer look at issues around the impact of COVID-19, green finance, and the levelling up agenda.

APPG Chair Rt Hon Karen Bradley MP commented:

“I’m delighted to welcome Allica Bank as our latest Associate Member of the APPG and for their support of both our annual reception and our exciting future work programme.

“Allica join us at a moment of great challenge but also great opportunity for the challenger bank sector. After a busy 2021, which has seen the APPG publish a number of reports, we have even more exciting activity in the pipeline for 2022.

“The APPG we will strive to continue to highlight the issues that challenger banks and building societies face in the current market and to make the marketplace more diverse and competitive for the benefit of consumers and the wider economy.

“Allica Bank’s support and their contributions to the future work of the group will be a huge asset to us and I look forward to working with Richard and his team in the coming months.”

Richard Davies, CEO of Allica Bank added:

“We are delighted to join the APPG for Challenger Banks and Building Societies and proud to be supporting its important work highlighting the importance of delivering a more diverse financial services market in the UK.

“It is vital we deliver more competition and choice for customers and clients in the UK banking market. The UK is a hot bed for fintech and financial services innovation, but there is still more to be done to ensure new entrants and challengers operate on a truly level playing field with the big 5 incumbent banks, and the APPG’s is critical to raising awareness and understanding of that important agenda.”

ENDS

Notes to editors

About Allica Bank

Recently named by The Times newspaper as one of the UK’s Top 20 financial technology (fintech) companies, Allica Bank is dedicated to serving and supporting small and medium businesses and empowering them to succeed. Allica combines modern, powerful technology with local relationships in the community to deliver expert banking for businesses in Britain.

Allica received its full banking authorisation in September 2019 and opened its doors to SME lending in March 2020. The bank offers businesses market-leading lending products including commercial mortgages and asset finance, as well as a range of business and retail savings products and services, with plans to launch a new SME business account in 2022.

Allica Bank received full banking authorisation in September 2019 and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register Number – 821851

City Minister And Economic Secretary To The Treasury To Address The APPG On Challenger Banks And Building Societies

The APPG on Challenger Banks and Building Societies is delighted that City Minister and Economic Secretary to the Treasury, John Glen MP, will be addressing a meeting of the group to discuss the current regulatory environment for both Challenger Banks and Building Societies.

John Glen has been in his current role for nearly four years now and played an integral role in helping to steer the UK’s economy through the twin challenges of Brexit and the COVID-19 pandemic.

The APPG has recently published its report on post-Brexit regulatory reform and in the New Year, we will also be revisiting our highly successful survey of the impact COVID-19 has had on Challenger Banks and Building Societies.

We are delighted that the Minister has agreed to talk to the APPG about these challenges and give some insight into the role that the Treasury sees for Challenger Banks and Building Societies in the months and years ahead.

Rt. Hon Karen Bradley MP, Chair of the APPG on Challenger Banks and Building Societies, said:

“The APPG’s recent report on post-Brexit regulation made some bold recommendations for regulatory reforms to level the playing field and give Challenger Banks and Building Societies the opportunity to play their full part in helping the British economy build back better from the twin challenges of Brexit and the COVID-19 pandemic.

“We look forward to hearing the City Minister’s views on the role he sees for Challenger Banks and Building Societies and what steps the government are planning to take to level the playing field and provide a regulatory environment which allows smaller institutions to grow and challenge the ‘Big Six’.”

APPG to hold Post-Brexit Regulation Inquiry evidence Session with Bank of England Deputy Governor Sam Woods and industry representatives

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Penrith Building Society Joins The APPG On Challenger Banks And Building Societies

Penrith Building Society joins the APPG on Challenger Banks and Building Societies

Penrith Building Society has become the latest building society to back the work of the APPG on Challenger Banks and Building Societies after joining as an Associate Member.

The APPG is a cross-party group of MPs and Peers that seeks to inform parliamentarians about the issues facing the challenger bank and building societies sector and provide a conduit for these institutions to get their voices heard in Parliament.

The impact of Brexit and the challenges of the COVID-19 pandemic mean it is an especially challenging time for financial institutions and the role of smaller building societies like the Penrith has never been more important.

This is a message the APPG has highlighted in its reports this year into Diversity in the Banking Sector and the impact of Coronavirus and it will continue to be a theme throughout the groups packed work programme for 2021.

Welcoming Penrith Building Society as an Associate Members, the chair of the APPG on Challenger Banks and Building Societies, Rt. Hon Karen Bradley MP said:

“Building Societies like the Penrith sit at the heart of their communities and play a vital role in them. They are an essential but often overlooked part of the financial services sector and the APPG on Challenger Banks and Building Societies is committed to helping these organisations and giving them a voice in Parliament.

“It is terrific to have the Penrith Building Society on board as an Associate Member and I look forward to working with them on the busy work programme the APPG has scheduled in 2021”

Tim Bowen, CEO of Penrith Building Society said:

‘’We see a huge amount of value in joining the APPG as an Associate Member, firstly in having a voice as the smallest Building Society in the United Kingdom, but, moreover, to continue to raise consumer awareness of the vast choices they have within the financial services marketplace in meeting their financial needs which, in turn will provide them with the best outcomes and maintain competition which is as important as ever in the current climate.’’

Notes to editors

Penrith Building Society was founded in 1877 as a mutual building society to help local people look after their money and buy their own homes. These principles remain in the fabric of the Society. It now has borrowing and saving members across the country and is still proud to be a part of, and to represent, the local community in Penrith and Cumbria.

The All Party Group on Challenger Banks and Building Societies is a cross-party group of MPs and Peers chaired by Rt. Hon Karen Bradley MP that seeks to inform parliamentarians of all parties about the challenger banks and building societies sector, the issues and challengers facing them, and to promote diversity within the sector. It has recently published the results of an inquiry into Diversity of Financial Institutions in the UK and a survey of the impact of the COVID-19 pandemic on institutions.

The Chair of the APPG CBBS, Rt. Hon Karen Bradley MP and Tim Bowen, CEO of Penrith Building Society are available for interview.

OakNorth Bank The Latest Challenger To Support The APPG On Challenger Banks And Building Societies

The APPG on Challenger Banks and Buildings Societies is delighted to welcome OakNorth Bank and its latest Associate Member.

The APPG is a cross-party group of MPs and Peers that seeks to inform parliamentarians about the challenger banks and building societies sector, the issues and challengers facing them, and to promote diversity within the sector.

OakNorth Bank – the UK bank powered by OakNorth – is an established UK challenger bank that provides fast, flexible and accessible debt finance of £500k to £45m to fast-growing businesses and property developers.

Commenting on OakNorth Bank’s decision to join the APPG, its Chair, Rt Hon. Karen Bradley commented:

 “The APPG has an exciting programme of future inquiries lined up for what looks set to be a critical year for the financial services sector here in the UK.

It is therefore great to have the backing of OakNorth Bank as we venture into the post-Brexit and post-Covid future.

OakNorth is an established UK challenger bank and I know they will be contribute a huge amount of useful insight and experience to the work that we will be doing.

“The APPG and myself look forward to working with OakNorth and their fellow Associate Members to help shape a regulatory and legislative platform that can allow all challenger banks to flourish.”

Nick Lee, Head of Regulatory Affairs at OakNorth Bank said:

 “Since the financial crisis, regulators and policy makers have done a huge amount to support the challenger banking sector and enable new entrants such as ourselves – creating more competition and widening the flow of credit to SMEs.

It is now vital that the right risk based and proportionate steps are taken by regulators and policy makers to remove the barriers to scaling that exist and ensure there can be effective competition in the banking sector as these new banks move into the next stage of their growth. We are therefore delighted to be joining the APPG for Challenger Banks and Building Societies.”

Notes to editors

 OakNorth Bank launched in September 2015 with a mission to provides fast, flexible and accessible debt finance (from £500k to £45m) to fast-growth businesses. Its clients include: bars, restaurants, hotels, nurseries, schools, care homes, retirement villages, debt funds, private equity firms and established property developers / investors. Since its launch, the bank has lent several billion pounds to several hundred businesses across the UK, who have gone on to develop 16,000 new homes and create almost 20,000 new jobs. OakNorth Bank is participating in both the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

The All Party Group on Challenger Banks and Building Societies is a cross-party group of MPs and Peers chaired by Rt. Hon Karen Bradley MP that seeks to inform parliamentarians of all parties about the challenger banks and building societies sector, the issues and challengers facing them, and to promote diversity within the sector. It has recently published the results of an inquiry into Diversity of Financial Institutions in the UK and a survey of the impact of the COVID-19 pandemic on institutions.

The Chair of the APPG CBBS, Rt. Hon Karen Bradley MP and Nick Lee, Head of Regulatory Affairs at OakNorth Bank are available for interview.

Bradley Welcomes Aldermore Bank To Challenger Banks And Building Societies Group

Rt Hon. Karen Bradley MP has welcomed Aldermore Bank has an Associate Member of the APPG on Challenger Banks and Building Societies.

The APPG is a cross-party group of MPs and Peers that seeks to inform parliamentarians about the challenger banks and building societies sector, the issues and challengers facing them, and to promote diversity within the sector.

Rt Hon. Karen Bradley commented:

“I’m delighted to welcome Aldermore as an Associate Member of the APPG.  Aldermore is one of the biggest names in the challenger bank sector and it is fantastic to have them on board.

“As the latest challenger bank to throw its weight behind the work of the group, it is joining at an exciting time, with a series of reports on aspects of regulation planned for 2021.  Aldermore’s insight will be invaluable for the future work of the APPG. They are a key voice in the challenger bank sector and have experience of growing a new bank from a start-up to a billion-pound business.

“It is a particularly challenging time for everyone in the sector, but the APPG has continued to work hard to ensure parliamentarians from all sides understand the needs of challenger banks and can help the whole UK financial services sector to diversify and flourish.

“2020 has been an extremely busy year for the APPG.  We’ve been working on a range of reports form the diversity of institutions to access to banking as well as trying to assess the impact of COVID on the sector.  There is much work still to be done but and the support of Aldermore will be hugely beneficial to the output of the APPG in 2021.”

Phillip Monks, CEO of Aldermore said:

“We’re delighted to support the challenger bank’s voice in Parliament, especially in what is likely to be a significant period of continued reform and change for the finance sector. I founded Aldermore in 2009 during the financial crisis as the first of a new breed of challenger banks when I saw many established lenders retreating from supporting businesses that were well run and profitable but who needed capital and financial help to grow.

The finance sector has come a long way in the last decade but the challenger bank movement in the UK has more to do. Most challenger and specialist banks are still only able to compete with each other in around 20% of the market whilst 80% is with the four or five main high street banks. However, what the Covid-19 crisis has shown is that UK businesses and consumers need a future with a truly competitive and diverse financial sector. Given the current appetite within Government and regulators to engage around reform, we believe this APPG will be an invaluable voice for challenger and specialist banks in the debates that lie ahead.”

Notes to editors

Aldermore was established in 2009 by founder and CEO Phillip Monks OBE. It was the first of a new breed of challenger bank that provides financing to back UK small and medium sized enterprises (“SMEs”), supports investors and homebuyers with mortgage finance, while offering a dynamic online savings proposition. The Bank services customers and intermediary partners predominantly online and by phone. Aldermore’s purpose is to back people to fulfil their hopes and dreams and is part of the FirstRand Group, the largest financial services group in Africa by market capitalisation.

The All Party Group on Challenger Banks and Building Societies is a cross-party group of MPs and Peers chaired by Rt. Hon Karen Bradley MP that seeks to inform parliamentarians of all parties about the challenger banks and building societies sector, the issues and challengers facing them, and to promote diversity within the sector. It has recently published the results of an inquiry into Diversity of Financial Institutions in the UK and a survey of the impact of the COVID-19 pandemic on institutions.

APPG Invites Written Evidence Into Wirecard

The All-Party Group on Challenger Banks and Building Societies has launched in inquiry into the Wirecard collapse and is inviting written evidence.

The committee has already taken oral evidence from leading industry figures including:

• Eduard Panteleev – Co-Founder and CEO – Anna Money
• Virraj Jatania – Co-Founder and CEO – Pockit
• Nigel Verdon – Co-Founder and CEO – Railsbank

It is now inviting written evidence from any institution that has been affected by the Wirecard situation.

The APPG is seeking to understand:

• The key issues behind the Wirecard collapse;
• Could a Wirecard style debacle occur in the UK with a UK regulated payment provider?
• Regulation of fintech institutions and whether this was appropriate and proportionate to
• foster growth and to protect the public?
• Would the FCA and Bank of England’s approach have been different from BaFIN?
• Do regulators adequately understand the business models and risks presented by Fintech companies?
• Are there adequate procedures for whistle-blowers to alert regulators to problems in firms?

You can read the full Call for Evidence on our website.

Chair of the group, Rt. Hon Karen Bradley MP commented:

“The Wirecard collapse has revealed that there are issues in the German regulatory regime for fintech businesses with significant implications for UK firms and consumers.  We’re taking evidence from leading challenger banks to better understand the issues and to see whether the same problem could occur here.”

Ends.

Notes to editors:

The Chair of the APPG CBBS, Rt. Hon Karen Bradley MP, is available for interview about the findings of this report and the recommendations made.

All requests for interviews and other media enquiries should be directed to the Secretariat of the APPG using the following details:

Contact – Havard Hughes – Barndoor Strategy

Tel: 07989 345820

Email: havard.hughes@barndoorstrategy.com

APPG launches inquiry into Wirecard

The All-Party Group on Challenger Banks and Building Societies has launched in inquiry into the Wirecard collapse.  The committee will be taking evidence today from leading industry figures including:

• Eduard Panteleev – Co-Founder and CEO – Anna Money
• Virraj Jatania – Co-Founder and CEO – Pockit
• Nigel Verdon – Co-Founder and CEO – Railsbank

The APPG will be seeking to understand:

• The key issues behind the Wirecard collapse;
• Could a Wirecard style debacle occur in the UK with a UK regulated payment provider?
• Regulation of fintech institutions and whether this was appropriate and proportionate to
• foster growth and to protect the public?
• Would the FCA and Bank of England’s approach have been different from BaFIN?
• Do regulators adequately understand the business models and risks presented by Fintech companies?
• Are there adequate procedures for whistle-blowers to alert regulators to problems in firms?

Chair of the group, Rt. Hon Karen Bradley MP commented:

“The Wirecard collapse has revealed that there are issues in the German regulatory regime for fintech businesses with significant implications for UK firms and consumers.  We’re taking evidence from leading challenger banks to better understand the issues and to see whether the same problem could occur here.”

Ends.

Notes to editors:

The Chair of the APPG CBBS, Rt. Hon Karen Bradley MP, is available for interview about the findings of this report and the recommendations made.

All requests for interviews and other media enquiries should be directed to the Secretariat of the APPG using the following details:

Contact – Havard Hughes – Barndoor Strategy

Tel: 07989 345820

Email: havard.hughes@barndoorstrategy.com

APPG CBBS launches Coronavirus Impact Survey

The All-Party Parliamentary Group on Challenger Banks and Building Societies is currently running an inquiry into the impact of the coronavirus pandemic on building societies and challenger institutions.

While the pandemic has affected all areas of society including the financial services sector, there has been less focus on the impact it has had on smaller institutions and mutuals.

The APPG plans to examine this impact in more detail and has circulated a short survey to gather information about their experiences.

The survey consists of 10 questions and has been circulated to all the APPGs financial services stakeholders. All responses will be treated anonymously unless institutions state they are happy to be referenced.

We will also be holding an evidence and publishing a short report on our findings and have invited firms to submit additional written evidence in relation to the impact of the Coronavirus pandemic if they wish.

The deadline for all responses to be submitted is 5pm on Friday 12th June.

If your institution is interested in participating in this inquiry and completing the survey, please contact the APPG Secretariat for more details.

Karen Bradley elected new Chair of APPG CBBS

At its AGM on 26^th February, Rt. Hon Karen Bradley MP was elected as the new chair of the APPG on Challenger Banks and Buildings Societies.

Karen is a former Secretary of State for Culture, Media, and Sport and Northern Ireland and currently also chairs the House of Commons Procedure Committee. She is the Conservative MP for Staffordshire Moorlands and has the Leek United Building Society in her constituency.

Prior to being elected to Parliament, Karen worked as an accountant for two of the major accounting firms as well as spending a spell as a self-employed tax and economics consultant. She has qualified as both a Chartered Accountant and Chartered Tax Adviser.

The APPG also elected five Vice-Chairs. They are Jim McMahon MP (Labour/Co-op MP for Oldham West and Royton), Peter Gibson MP (Conservative, Darlington), Baroness Kramer (Lib Dem), Baroness Drake (Labour), and Baroness Wheatcroft (Conservative).

Notes:

• You can find a list of all the members of the APPG on Challenger Banks and Building Societies here.
• Membership of the APPG is open to all members of the House of Commons and House of Lords. Other stakeholders are also welcome to join as Associate Members.
• If you would like to find out more about membership, please contact the Secretariat.

Cross party group call for change in the law to protect access to banking

A cross party group of MPs has called for Government action to tackle the problem of branch closures.  The APPG for Challenger Banks and Building Societies has today published a report highlighting the worrying decline in bank branch networks and the knock on effect this is having on high streets and other businesses.

The APPG has made four recommendations:

• Government legislation to allow challenger institutions to take over closing branches;
• a community scheme to allow towns and villages without a bank to tender for challengers to relocate there;
• a partnership scheme for challenger banks and building societies to open shared banking space in town centre locations;
• Clarification from the Government about the anticipated future role of the Post Office if it becomes the bank of last resort in towns and cities across the country.

In producing the report the APPG consulted leading organisations in the retail banking sector as well as academics.

The report’s key findings include that decline is not inevitable and that there is still a strong appetite for face-to-face banking.  However, banks are keeping their costs opaque and working to drive people online.

The group is therefore calling on banks and other financial institutions to be more transparent about how they fund their services and for the establishment of a fund to drive competition and allow new players to take over “big 6″ branches” when any branch closes in a town.

Lee Rowley, Chair of the APPG on Challenger Banks and Building Societies commented:

“A major revolution that is taking place in the UK in the way that people access retail financial services.  Not only is the day of Mr Mainwaring gone, the very building in which the Mr Mainwarings of this world once worked are being erased from our high streets.  We’ve received worrying evidence that this can lead to a 20% drop in footfall on the high street.

With the rationalisation of branch networks is continuing apace, we have proposed some suggestions as to what government and regulators could do to anticipate the challenges ahead and to empower challenger banks, communities and local politicians to step in.”

Ends.

Notes to editors:

• Copies of the report can be downloaded from the CBBS APPG website here
• The report is part of a series and the All-Party Group on Challenger Banks and Building Societies will be publishing further reports on diversity of institutions and regulation in the coming months.

Future of branches is strong says the Nottingham’s David Marlow

The Nottingham Building Society’s David Marlow has announced that the future of building society branches is strong, but only if they reinvent their purpose.  Against a backdrop of relentless branch closures by the major banking groups the Nottingham Building Society has grown its network by embracing new technological solutions to customers’ needs and fundamentally changing the use of Bank branches.

Marlow was speaking at the first in a series of evidence sessions launched by the All Party Group on Challenger Banks and Building Societies.  The cross-party group of MPs is looking at banking regulations in general and access issues for consumers in particular.

The APPG is taking oral and written evidence and will publish a series of detailed reports to find out how consumers can get a fair deal.

David Marlow commented:

“The future for us is strong as we have a proposition that is relevant to consumers.  Many of our competitors are struggling to keep open their branch networks as they rely on transactions to drive business.  Meanwhile, we’ve seen a 10% rise in footfall and doubled the size of our network as we’ve started offering a wider range of services.  Our new branch in Newark will for example act as a community hub as well as allowing members to access a wide range of advice services using complimentary digital tools.

The issue of branch closures goes beyond the financial services sector.  Our research has shown that closing branches leave remaining town shops experiencing a 20% fall in trade.”

Kemi Badenoch MP commented:

“It is great to see building societies taking the lead in branch innovation.  I know from my constituency the importance of branches to local town centres both in terms of allowing people to access services and driving footfall for other retailers.  “

Notes to editors

1. David Marlow was speaking at the APPG’s oral evidence session on the 15^th November 2018.
2. The Nottingham has grown from 32 branches to 67
3. A detailed call for evidence has been issued via the APPG’s website: cbbsappg.org.uk
4. The APPG’s second oral evidence session on diversity of services will take place on the 3^rd
5. Kemi Badenoch is the MP for Saffron Walden. Further biographical details and images can be found https://www.saffronwaldenconservatives.com/kemibadenochmp
6. The CBBS APPG’s aims and objectives are set out on the parliamentary register for APPGs and are: To review the regulations of the banking and financial sector and to promote fair competition, removing entry barriers and encouraging diversity of service.”

Can consumers access the banking they need?

A new cross-party group of MPs and Peers has called for firms, finance experts and others to share their ideas on how consumer access to financial services can be improved.   The All-Party Group on Challenger Banks and Building Societies issued this call ahead of its oral evidence session on Thursday 15^th November.  The APPG will be taking evidence from David Marlow, Chief Executive of the Nottingham Building Society and Joseph Lane of the CAB into the problems that consumers face in accessing banking services.

The parliamentary group is made up of cross-party MPs and Peers, many who have been involved with the changes to the UK’s regulatory regime following the financial crash.  They will be seeking to understand whether post-crash financial regulation is to blame for the continued dominance of the major banks and what action should be taken by regulators to improve competition.  The access paper will form the first part of a series of detailed reports which will be published from January 2019.

This call for evidence is the first in a series that the group will be issuing and will shortly be followed by a call for evidence on diversity in financial services.

David Marlow, Chief Executive, Nottingham Building Society commented:

“We’re delighted to be able to share with MPs and Peers, the work we’ve been doing on growing our branch network.  We’ve previously published reports which found that high streets and market towns are hugely affected by the closing of nearby branches and branches that are solely focused on transactional offerings have a limited future.

We believe strongly that branches can have a positive impact on communities in the UK if their role is reinvented to become more relevant to what customers want. Our branch proposition has evolved to offer a wider range of advice-led services including mortgage comparison, estate agency services, lettings and financial advice services and seen footfall increase by around 10% as a result. Banks and building societies need to do more to try and prevent more branches from closing, and the industry should start by looking at the services offered and making sure they are more relevant to the needs of people today.”

Robin Fieth, Chief Executive, Building Societies Association (BSA) commented:

“Consumers are best served by a financial services sector which offers a choice of providers which approach the way they do business differently.  The fact that building societies are owned by their savers and borrowers makes a huge difference in how they make decisions and which decisions they make.  They were the original challenger institutions and we are delighted to be involved in this new All Party Parliamentary Group and its inquiry.”

Kemi Badenoch MP commented:

“Many MPs and Peers have been concerned that changes to the high street may mean that local people lose access to vital financial services.  We’re trying to understand the factors driving the change and we’re interested to hear from organisations that are bucking the trend and others.  We plan to publish a detailed report and recommendations for action to inform HM Treasury and regulators on how they can help consumers access financial services.”

Ends

Challenger Banks and Building Societies APPG Contact:

Notes to editors

• A detailed call for evidence is available on the APPG’s website: https://www.cbbsappg.org.uk/terms-reference/
• The CBBS APPG is taking both oral and written evidence with a deadline of 5pm on the 14^th December 2018.
• The APPG’s first oral evidence session on access to banking services will take place on the 15^th
• Kemi Badenoch is the MP for Saffron Walden.  Further biographical details can be found here: https://www.saffronwaldenconservatives.com/kemibadenochmp
• Details of the Nottingham Building Society’s work around branches can be found here: https://www.thenottingham.com/news/nottingham-building-society-opens-seven-new-branches/
• The CBBS APPG’s aims and objectives are set out on the parliamentary register for APPGs and are: To review the regulations of the banking and financial sector and to promote fair competition, removing entry barriers and encouraging diversity of service.”