Aldermore Bank joins parliamentary group for neobanks

Neobank Aldermore Bank has joined the Challenger Banks and Building Societies Group, a parliamentary group promoting fair competition and encouraging diversity of service.

The group made waves this summer when it criticised the government’s handling of the coronavirus when it came to neobanks.

Karen Bradley, member of parliament, has welcomed Aldermore Bank has an associate member of the group. “I’m delighted to welcome Aldermore as an associate member of the APPG,” she said. “Aldermore is one of the biggest names in the challenger bank sector and it is fantastic to have them on board.

“As the latest challenger bank to throw its weight behind the work of the group, it is joining at an exciting time, with a series of reports on aspects of regulation planned for 2021. Aldermore’s insight will be invaluable for the future work of the APPG. They are a key voice in the challenger bank sector and have experience of growing a new bank from a start-up to a billion-pound business.”

Phillip Monks, CEO of Aldermore, added, “We’re delighted to support the challenger bank’s voice in parliament, especially in what is likely to be a significant period of continued reform and change for the finance sector. I founded Aldermore in 2009 during the financial crisis as the first of a new breed of challenger banks when I saw many established lenders retreating from supporting businesses that were well run and profitable but who needed capital and financial help to grow.

“The finance sector has come a long way in the last decade but the challenger bank movement in the UK has more to do. Most challenger and specialist banks are still only able to compete with each other in around 20% of the market whilst 80% is with the four or five main high street banks.

“However, what the Covid-19 crisis has shown is that UK businesses and consumers need a future with a truly competitive and diverse financial sector. Given the current appetite within Government and regulators to engage around reform, we believe this APPG will be an invaluable voice for challenger and specialist banks in the debates that lie ahead.”

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