close
Banks

Brexit boosts lure of sticky deposits for U.K. banking startups

bank2

As Europe’s largest banks discourage new deposits, a score of British startup lenders see them as more crucial than ever.

Banks in talks with regulators for bank licenses in Britain are reworking their plans to rely even more on funding from deposits than from wholesale markets after the country voted to leave the European Union in June, according to a person familiar with the matter.

That’s in contrast with Royal Bank of Scotland Group Plc and HSBC Holdings Plc, which are discouraging some depositors as low and negative interest rates across Europe squeeze profitability.

Risk Warning:

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Paul

The author Paul