Lloyds to re-engineer business banking
Lloyds Banking Group CEO, António Horta-Osório, is calling for a range of industry proposals to enhance competition in SME banking.
He wants to explore more innovative ways for the industry to improve product switching through comparison websites, and use technology to provide more effective banking services for small businesses.
Mr Horta-Osório argues that in the SME market, businesses traditionally do not, on the whole, tend to shop around partly because there isn’t the level of intermediary and comparison websites found in personal finance.
He also believes that new digital services will have a huge impact in improving competition by lowering barriers to entry for new competitors and changing the structure and role of branch networks.
In summing up, Mr Horta-Osório said: “It will require a concerted effort on behalf of the banking industry to achieve this goal, but let me assure you that Lloyds is absolutely committed to driving the improvements we all want to see as part of our broader commitment to the businesses community, and to the benefit of the wider economy. That is why we have been growing our SME net lending for four years now, in a falling market.”