Lending

TSB plans “aggressive” transformation of small business lending market

Praseeda Nair | 27 October 2017 | 7 years ago

Stroud,  United Kingdom - September 11,  2013: A newly opened TSB building society branch on Stroud high street in the southwest of England
TSB confirmed its intention to seek a grant from the RBS fund set up to increase business banking competition
The chief executive of TSB bank has announced plans to be as aggressive as possible? in disrupting small business lending andproviding entrepreneurs with the finance needed to grow their firm.

Responding tothe bank’s latest financial results for 2017, TSB CEO Paul Pester said the figures showing 1, 000 new accounts opening dailywith 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.

Healso 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.

Read more: Government and EU agree measures to resolve RBS state aid commitments

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 well 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 lendingplans 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.”

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Topic

Lending

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