John Davies, chairman of the Association of Alternative Business Finance, argues that the UK needs more imaginative thinking from the Treasury to help support SMEs. The UK’s major banks have access to cheap funding from the government while the majority of fintechs are forced to find capital through the more expensive capital markets. Yesterday it was announced that the UK Treasury failed to force larger banks to act as middlemen so that alternative lenders could gain access to the government’s cheap capital, due to ‘commercial challenges.’ Said Davies, “I’m not in the least surprised because why would the established banks want to help nimbler, more fleet of foot competitors?” This is a disappointing and ironic result, since both the UK’s vibrant fintech scene and heretofore hospitable regulatory environment are recognized the world over. AltFi
