Banking Small Businesses: Forging Closer Ties between Banks and the Real Economy

The report recommends a range of bank and government measures to support SME access to finance, advice, protection and redress, especially in the light of the Brexit vote, including:

  • Improved bank support to SMEs on business critical issues, including investment readiness and financing options, with a focus on smaller, local and regional SMEs
  • Simplified bank/SME lending agreements in the form of a standardised lending contract
  • The development of an effective Government SME legislative strategy
  • The introduction of a range of government measures to support SMEs, including incentives to banks to lend to SMEs; a new definition of self-employed and micro-businesses (SEMs); new regulatory Transfer of Undertakings (TUPE) to cover onward sales of contracts; a statutory duty of care for banks in their undertakings with SMEs
  • The introduction of a new Financial Arbitration Service that is fast, affordable and available to all SMEs

“The BankingFutures report has a vital role to play in changing the role of banking and demonstrating how they can become a force for good in the UK. The report makes clear and practical recommendations on actions which banks and government can take to support small businesses’ access to finance, advice and redress, enabling them to grow and prosper,”
Bevis Watts, UK Managing Director, Triodos Bank

“BankingFutures’ recommendations are an effective and proportionate response to upgrading banking practices and regulation to meet the needs of smaller companies. They have made a major contribution to the debate by calling out the growing importance and specific needs of the self-employed and micro-businesses, crucial to wealth generation, creativity, innovation and personal fulfilment,”
Tony Greenham, Director of Economy, Enterprise and Manufacturing, RSA

The report is the result of dialogue between a multi-stakeholder Action Group. The dialogue was one of two workstreams, both of which were directed by Sophia Tickell of Meteos and Anne Wade of Leaders’ Quest. The BankingFutures dialogue engaged with over 100 senior banking leaders, investors, sector experts, government departments, customers and civil society stakeholders.

To read the report on Pathway to Long-Term Value please click here.

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