Industry News
Industry News 1. FCA flags concerns over financial crime defences
3. Loan rates fall as demand for home improvements rise
6. Small firms eye financial growth despite slump in optimism
The FCA has said the financial crime controls employed by challenger banks should be improved after a “substantial” increase in suspicious activity reports filed last year. Digital banks should be collecting more data about where their clients are making their income and what their jobs are so they can better spot criminals and money-launderers. The FCA said that there could not be a “trade-off” between getting customers to come into the fold and the checks that all banks need to do.
Borrowers looking to make home improvements will find the average cost of an unsecured personal loan has fallen year-on-year, according to research from Moneyfacts.co.uk. Loan rates have fallen on small sums – on a borrowing amount of £3,000 over a three-year repayment period, the average loan rate is down from 14.6% a year ago to 14.3% today. Borrowers can avoid paying more than £600 in interest charges on an average loan by choosing a fee-free 0% credit card instead.
2. Manufacturing demand slows amid cost rises
4. Lenders pushing green loans to landlords
A new survey by Azets reveals that 51% of SMEs across the UK and the Nordics are optimistic about the economic outlook, down from 68% last summer. UK SMEs are the least positive, with 40% expecting the economic climate to worsen. However, despite concerns over the economy, 62% of all SMEs expect their turnover to increase during the next year and 53% expect profits to improve. Peter Gallanagh, at Azets, said: “SMEs remain committed to pivoting their business models and embracing digitalisation.”
Optimism fell sharply in April, as growth in manufacturing output and new orders slowed and costs and selling prices grew at their fastest paces in over 40 years, according to the CBI quarterly Industrial Trends survey. The cost of raw materials was the most important factor behind expectations for cost growth in the next three months followed by energy costs, transport costs and labour costs. Investment intentions weakened notably, but employment growth improved and is expected to pick up further next quarter.
The number of green buy-to-let deals – which offer cheaper loans to investors who have or will make energy efficiency upgrades – has tripled in the past eight months. There were 369 such mortgages at the end of March, up from 118 in August last year, according to data from NACFB Member firm Mortgages for Business. Green products account for one in six buy-to-let deals on offer to landlords borrowing personally and one in five deals to investors who use a limited company.
2 10 | NACFB
5. Insolvencies more than double with firms hit by inflation Official figures released by the Insolvency Service show company insolvencies more than doubled in March as soaring inflation and rising borrowing costs pushed firms over the edge. Some 2,114 firms in England and Wales registered for insolvency during the month, up from 1,516 in February and 999 in March 2021. The first quarter of this year saw the highest number of company insolvencies recorded since the third quarter of 2017. The number is expected to increase as government support schemes draw to a close.
6 7. More retailers will disappear from Britainʼs town centres More businesses will disappear from Britainʼs town centres this year than during the two years of the pandemic according to Andrew Goodacre, CEO of the British Independent Retailers Association. He said: “If the cost of products go up these can be passed on to the consumer but it is very difficult to pass energy and wage rises on entirely.” Mr Goodacre added that some members were also struggling to be accepted for energy contracts because suppliers deemed them too high risk.
