Recommendation 35

Despite the entrance of new challengers into the UK banking sector, it is clear that UK banks are collectively failing to provide the finance small businesses need to grow. Barriers include high levels of risk aversion and a bias towards maximising short-term profits by lending to larger companies. Challenger banks are improving the competitive supply of finance to small firms, but are constrained by the lack of access to real time data. (Conclusion, Paragraph 127)