Nicola Wildman, Manager of Banking Authorisations at the Financial Conduct Authority (FCA) presented at our recent Credit Risk Summit. She tells us about how the FCA have made changes to make it easier to set up a new bank, allowing more entrants to the market.
“Growth and diversity are front of mind for the FCA, which wants to use its powers to prise open banking and financial services to allow in more entrants, encourage new ways of doing business and pave the way for more competition and consumer choice.” As a result:
Since 2013, changes have been made to reduce the regulatory barriers to entering the banking market. For start-ups this means:
- Minimum capital reduced from €5mn to €1mn for small specialist banks
- Certainty of early authorisation offers credibility to enable the recruitment of staff and negotiation with suppliers and agencies
- A far more efficient, faster and cost-effective process
- Regulatory expectations are made clear from the outset with pre-application support and named case officers available throughout
- Timeframes in pre-application and mobilisation are driven by the applicant, not the regulator
The climate of innovation and change is meeting the FCA’s remit to drive more consumer choice and provide challenge to the existing banking sector.
These changes will affect the industry… will you do anything differently?