The Banking Competition Remedies holds first event to help applicants understand RBS £775 million State Aid Alternatives Remedies Package.
Today the Banking Competition Remedies is holding its first event to help applicants understand how the RBS £775m State Aid Alternatives Remedies Package will work. Our head of Fintech comments on what this means for UK banking.
Anton Ruddenklau, global co-head of fintech, KPMG:
“Whatever the process, the £775 million State Aid Alternatives Remedies Package has the potential to revolutionise the UK banking market. However, though a hefty sum, neither firms nor the public should be fixated on the sums of money involved, instead we should be entirely focused on the almost unimaginable impact of its potential outcome.
“Marcus, Goldman Sachs’ digital retail bank, today launches its highly competitive UK savings product - a small indication of what’s to come. We estimate that by 2020, UK banks will be spending more on data related technologies than their legacy systems in pursuit of digital banking.
“Building entirely new banks untethered to any existing systems will help the sector bring its technological capabilities up to scratch, especially as greenfield banks are well placed to work with and utilise the abundance of start-up fintechs in the UK.
“We are all only too aware of the challenges incumbent banks face - cumbersome technology, high operating costs and a weighty cocktail of compliance challenges - so when there is the funding, innovation and skills to invest in greenfield approaches, why continue with sticking plasters?“
The remedy fund provides one crucial ingredient to ensuring UK fintech maintains its global dominance and supports the creation of a competitive, customer focussed UK financial system. I’m excited to see what comes out the other side of this process.”
Notes to Editors:
For media enquiries, please contact:
Jamie Bullen, KPMG corporate communications
M: 07876 863239
Christina Bridge, KPMG Corporate Communications
M: 07789 504905
KPMG Press Office: +44 (0)207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.