Two in five financial services firms lack safe AI controls September 11, 2025 As the financial services industry piles billions of pounds into artificial intelligence (AI), firms are lacking adequate measures to maintain safe usage, according to new figures. Fresh data from Big Four accountancy giant EY reveal 26 per cent of companies have no or limited controls in place to ensure AI systems adhere to laws and [...]
High street banks’ SME lending comeback inches forward September 11, 2025 High street banks’ return to small- and medium-sized enterprises (SME) inched onwards in the second quarter. The big banks have turned back to the area as the government clamps down on smaller firms’ difficulty accessing finance. Top bosses were summoned earlier this year for talks with ministers covering how to improve lending to SMEs. In [...]
FCA plans to allow contactless payment limits above £100 September 10, 2025 Card providers are set to be given the powers to set their own limits on contactless payments, which are currently set at £100, under proposals set out by the City regulator. The Financial Conduct Authority (FCA) has revealed that it will consult industry on whether the rules should be relaxed as part of its task [...]
Clearbank brings fintech revolution to corporate banking September 9, 2025 UK fintech Clearbank has laid out plans to power up its embedded banking services and take on legacy banks on a new battlefield. The firm said outdated “one-size-fits-all” approaches from centuries-old high street banks were “no longer fit for work” and set out plans to challenge traditional transaction services in areas like travel, hospitality and [...]
HSBC lands £333m in dividends from takeover of Silicon Valley Bank UK September 9, 2025 HSBC Innovation Banking has handed a £333m in dividends to its parent company amid a surge in profitability after completing its first full year as a subsidiary of HSBC Group. The lender, which had been the UK subsidiary of Silicon Valley Bank until the latter’s demise in 2023, paid HSBC a special dividend of £198m [...]
FCA: ‘Large number of consumers’ wronged in motor finance deals September 9, 2025 The UK’s financial watchdog is gearing up for an industry-wide redress scheme on the historic motor finance scandal where huge swathes of customers could be eligible for compensation. Nikhil Rathi, chief executive of the Financial Conduct Authority, said there was “evidence that there have been unfair relationships between lenders and their consumers” and that a [...]
Labour deputy leader hopeful slams Rachel Reeves’ ‘excessive deference’ to OBR September 8, 2025 The prominent backbencher and former transport secretary Louise Haigh, who is a frontrunner to become the deputy leader of the Labour Party, has taken aim at Chancellor Rachel Reeves’ “excessive deference” to the Office for Budget Responsibility (OBR) and adhering to “arbitrary fiscal targets”. Senior officials in the Labour Party are set to agree on [...]
Challenger banks face ‘profitability trap’ at growth crossroads September 8, 2025 The UK banking sector faces a profitability roadblock that will give the industry’s challengers an “existential” turning point. Fresh data from KPMG suggests the industry’s average return on equity will fall to eight per cent come 2027 down from 13 per cent four years prior. This is set to spark an £11bn reduction in pre-tax [...]
Banks’ bond market headache spells trouble for FTSE 100 September 4, 2025 The frenzy in the bond market spells trouble for banking stocks and could create broader issues for the FTSE 100. Bond markets have had a tumultuous week, with the UK’s 30-year gilt yields hitting a 27-year high. This was triggered by a global sell-off, as well as political unease stemming from a Downing Street reshuffle [...]
Rachel Reeves warned on bank tax by lobby group boss September 4, 2025 Rachel Reeves has been hit with a firm warning from the banking industry to avoid taxes on the sector or risk harming economic growth. The Chancellor has received a letter from the boss of UK Finance – a lobby group for the banking industry – which details the harm of tax on the sector. David [...]