BankingFutures

The reform of UK banking offers a unique opportunity to rethink what we need from the financial sector.

To this end, Meteos and Leaders’ Quest ran the BankingFutures project to explore how to build a healthier, more resilient and inclusive banking sector. BankingFutures’ work on long-termism on the capital markets was run in conjunction with the Investor Forum.

 

 

Over 14 months, we brought together leading bankers with investors, regulators and civil society groups for an in-depth dialogue on banking reform.

Our aim was to create a roadmap for change supported by stakeholders across the banking sector and the diverse communities it serves.

“BankingFutures has revealed the value of talking and listening to the stakeholders that banks are here to serve.”
John Flint, Chief Executive, Retail Banking and Wealth Management, HSBC

The result is two reports setting out concrete steps to ensure banks create long-term value for UK society, including:

  • How banks can better support the UK’s critical SME sector – which accounts for 90% of UK businesses and 60% of private sector employment.
  • What bank leaders and investors can do to deliver long-term value and better societal outcomes.

“BankingFutures makes practical recommendations on actions to support SME access to finance, advice and redress, enabling them to grow and prosper.”
Bevis Watts, Managing Director, Triodos Bank UK

This commitment to action, and visible, forward-looking leadership, creates the conditions for long-term change.

What is BankingFutures?

BankingFutures was a multi-stakeholder, structured dialogue designed to support the creation of a healthy, resilient and inclusive banking sector in the UK. It was run in partnership by Leaders’ Quest and Meteos, two non-profit organisations committed to improving the role of business in society, and led by Sophia Tickell, Co-Founder and Partner at Meteos and Anne Wade, Partner at Leaders’ Quest. BankingFutures’ work on long-termism in the capital markets was led in conjunction with Andy Griffiths, Executive Director of the Investor Forum.

What was the process?

BankingFutures was a two-phase project launched in 2015. It began with a structured dialogue with over 200 industry leaders, investors and customers. The resulting report, Banking on Trust, (February 2016), called for the UK banking system to take concrete action to:

Forge stronger links between the financial system and the real economy, focusing on the critical SME sector.
Reintroduce a long-term culture into investing (in recognition that the current model has been at the expense of customers and society)

Phase Two, which ran from March 2016 to July 2017, focused on identifying the concrete actions banks, investors and policymakers must take to achieve these two priorities.

The project was overseen by a Steering Group of senior banking leaders, investors, financial reform experts and civil society representatives. For a list of Steering Group participants, see below). Its remit was to provide guidance and supervision, and to ensure the cross-pollination of ideas across themes.

As a multi-stakeholder and collaborative project, the findings, interpretations and conclusions expressed herein may not necessarily reflect the views of all members of the group at all times. Members of all groups took part in a personal capacity.

What was our method?

We held formal roundtables, meetings and conversations between our multi-stakeholder Action Groups and experts on both SMEs and capital markets. We also arrange site visits to users of bank services and arranged for the group to meet and engage with financial exclusion experts and people who have been personally impacted by the shortcomings of the current banking system.

The process was designed to enable different stakeholders to build trust and develop solutions together. Our work was underpinned by extensive primary and secondary research, and consultation with a range of external experts.

Who took part?

BankingFutures benefited from the active engagement of over 100 people via roundtables, interviews and written submissions. Most people were happy to have their participation acknowledged by being included in the participant list below. Inclusion in this list, however, should not be taken as endorsement of all the project’s conclusions or findings.

Those consulted included:

  • Over 30 civil society and consumer organisations (including RSA, United Nations Environment Programme, Finance Innovation Lab, Paddington Development Trust, Money Advice Service, TUC and Finance Watch)
  • Over 20 SME owners and SME representative bodies from across the UK (including the Federation of Small Businesses, the Forum of Private Business and Your Business Community)
  • Responsible Finance institutions such as Finance for Enterprise, Sheffield Growth Hub, Responsible Finance and SWIG Finance
  • Senior regulators from the FCA and key members of the Consumer Panel
  • Senior policymakers from the Treasury, Department for Business, Energy and Industrial Strategy, the Banking Standards Board, Government Inclusive Economy Unit and the Financial Ombudsman Service
  • Fund managers and CIOs from some of the biggest investment firms with UK bases
  • Governance and ESG experts from those and other investment firms
  • Individuals in senior leadership positions of participating banks (Barclays, HSBC, Lloyds and Deutsche)
  • CEOs and senior leaders of new entrant banks including Triodos, Shawbrook and Virgin Money

Conclusions

BankingFutures concluded with two interlinked reports which identify strategic partners and implementation plans. The reports highlight the need for capital markets to focus more on the long-term and how the long-standing challenges to supporting small and medium enterprises (SMEs) have been made more acute by recent changes to the banks’ business models. These business model changes are driven by actions to reduce costs given the ongoing pressure on profitability and the demands of capital markets. The report recommendations seek to address these connected issues.

The BankingFutures Steering Group

  • Heather Buchanan, Director of Policy and Strategy, All Parliamentary Group on Fair Business Banking
  • John Flint, Chief Executive, Retail Banking and Wealth Management, HSBC Holdings Plc
  • James Garvey, Managing Director, Head of Commercial Banking Markets, Lloyds Banking Group
  • Tony Greenham, Director of Economy, Enterprise and Manufacturing, RSA
  • Andy Griffiths, Operating Partner, Corsair Capital & Executive Director, Investor Forum
  • Jessica Ground, Global Head of Stewardship, Schroders
  • Matt Hammerstein, Head of Retail Products and Segments, Barclays UK
  • Will Hutton, Principal, Hertford College, University of Oxford & Chair of the Steering Group, Big Innovation Centre
  • Stephen Jones, Incoming CEO, UK Finance
  • Stuart Lewis, Chief Risk Officer and Member of the Management Board and Group Executive Committee, Deutsche Bank AG
  • Francesca McDonagh, Former Head, Retail Banking and Wealth Management, UK & Europe, HSBC Holdings Plc
  • Glen Moreno, Chairman, Virgin Money
  • Nick Robins, Co-Director, Inquiry into the Design of a Sustainable Financial System, UNEP
  • Simon Samuels, Independent
  • Bevis Watts, UK Managing Director, Triodos Bank
  • Helen Wildsmith, Stewardship Director, CCLA

BankingFutures Real Economy Action Group Participants

  • Tony Baron, Chair of the Treasury Policy Unit, FSB
  • James Cliffe, Head of Business Banking UK, HSBC
  • James Corah, Head of Ethical and Responsible Investment, CCLA
  • Tony Greenham, Director of Economy, Enterprise and Manufacturing, RSA
  • Will Hutton, Principle, Hertford College, University of Oxford & Chair of the Steering Group, Big Innovation Centre
  • Neil Johnston, Chief Executive Officer, Paddington Development Trust
  • Martin McTague, Policy Director, FSB
  • Marloes Nicholls, Innovation Programme Manager, Finance Innovation Lab
  • Steve Pateman, Chief Executive Officer and Director, Shawbrook Bank
  • Stephen Pegge, Group Competitive Markets and Business Policy Director, Lloyds
  • Rebecca Pritchard, Head of Business Banking, Triodos Bank
  • Nick Robins, Co-Director, Inquiry into the Design of a Sustainable Financial System, UNEP
  • Jennifer Tankard, Chief Executive, Responsible Finance
  • Stephan Wilken, Managing Director, Head of Enterprise and Model Risk, Deutsche Bank AG

BankingFutures Long-Termism Action Group Participants

  • Carla Antunes da Silva, Deputy Group Strategy Director, Lloyds
  • Stephen Atkinson, Cheif of Staff, Standard Chartered
  • Justin Bisseker, Pan-European Banks Analyst, Schroders
  • Albert Coll, Institutional Policy and Market Relations Director, Banco Sabadell ‎
  • Paul Cox, Senior Lecturer of Finance, University of Birmingham & Investment Advisor, NEST
  • Lawrence Dickinson, Senior Advisor to the Board and Group Chief of Staff, Barclays
  • John Flint, Chief Executive, Retail Banking and Wealth Management, HSBC Holdings Plc
  • Andy Griffiths, Operating Partner, Corsair Capital & Executive Director, Investor Forum
  • Sue Harding, Managing Director, Harding Analysis
  • Will Hutton, Principal, Hertford College, University of Oxford & Chair of the Steering Group, Big Innovation Centre
  • Stephen Jones, Incoming CEO, UK Finance
  • Hendrik-Jan Laseur, Founder, Lead the Change
  • Sacha Sadan, Director of Corporate Governance, LGIM
  • Simon Samuels, Independent
  • Eugenia Unanyants-Jackson, Director, Head of ESG Research, Allianz Global Investors GmBH