TSB plans “aggressive” transformation of small business lending market
The chief executive of TSB bank has announced plans to be “as aggressive as possible” in disrupting small business lending and providing entrepreneurs with the finance needed to grow their firm.
Responding to the bank’s latest financial results for 2017, TSB CEO Paul Pester said the figures – showing 1,000 new accounts opening daily with customer deposits now surpassing £30bn – had “cemented” the lender’s position as a challenger bank that could meet the needs of small business owners.
In an official statement, Pester championed the bank’s delivery of a “state-of-the-art banking platform”, which is allowing customers to become some of the first to use Apple’s new facial recognition technology to log into accounts.
He also confirmed the bank’s intention to compete for a grant from the Royal Bank of Scotland’s (RBS) Capability and Innovation Fund to finance its drive to shake-up the small business lending space.
The £750m fund, announced by the government in July, was set up as part of RBS’ state aid committments to increase competition in business banking by encouraging more business customers to switch accounts to eligible challenger banks.
“Breaking the stranglehold of the big five banks remains top of our agenda and we’ll continue to work closely with the government, policymakers and regulators in an attempt to bring the full force of competition to bear on the UK banking market – and ultimately make banking better for all UK consumers,” Pester said.
The CEO disclosed more detail of the bank’s small business lending plans to Sky News, confirming TSB’s intention to “offer something new” to entrepreneurs.
“If we get one of the bigger grants from RBS then we will use every penny of it to help support small businesses and to make it as uncomfortable as possible for the big five,” Pester said.
“We see ourselves as a challenger bank with teeth and we will be as aggressive as possible when it comes to small business lending.”
A business banking revolution? The best challenger banks for startups
Sign up to our newsletter to get the latest from Business Advice.