Lloyds has become the first UK bank to take advantage of the government’s Funding for Lending (FLS) scheme, which is designed to direct funnel money to struggling businesses. The bank announced on 19 September that it has drawn £1bn ($1.6 billion) from the initiative, as it seeks to increase the amount it is able to loan to businesses.
Chief executive officer (CEO), Antonio Horta-Osario, indicated that Lloyds will use the FLS on a regular basis. “This initial £1bn is just the start,” he said. “We are committed to helping Britain prosper by encouraging investment and supporting businesses and households.”
Under the terms of the FLS, the Bank of England (BoE) and the Treasury have joined forces to provide funding worth around £80bn to financiers at low interest rates over four years on the premise they pass these savings on to companies and households.
The UK’s ruling Conservative-Liberal Democrat coalition hopes that the programme will stimulate business activity and, in turn, boost economic activity.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.