Challenger banks suffer a collapse in lending growth

Industry News | 03/02/20

Digital startups like Monzo and Revolut are unencumbered by burdensome branch infrastructure. Challenger banks suffered a sharp fall in lending growth last year as the industry struggled to take on established players. The challengers – small new banks seeking to transform the market – lent a record £115bn in the 12 months to September 2019, according to consultant BDO based on numbers published by 19 institutions. This was just 3% more than a year earlier, a sharp fall from the previous growth rate of 19%.

The drop in growth will raise questions over whether the challengers’ ambition to shake up retail banking has faltered in the face of a sluggish economy and fierce fightback from dominant rivals.

Source: The Telegraph