In the Telegraph article dated 4th November, James Titcomb states that the analysts at Berenberg have predicted that a rise in the costs of running the big financial institutions which outweigh the benefits they provide "could force banks to shrink and break apart". Analysts are predicting that as "Godzilla had emerged as a response to the human race's power, forces sweeping across the industry would balance out the exuberance of the world's biggest banks". There is no doubt that the UK alternative banking sector is growing.
Inflation is a sustained increase in the general price level of goods and services in the economy over a given period of time. The BBC have published an article confirming that the Bank of England Committee have unanimously voted to keep interest rates at 0.5% whilst inflation remains at 0%. http://www.bbc.co.uk/news/business-32411561
Approximately one year ago, at the Budget 2014, the UK Government committed to making P2P loans eligible for inclusion within Individual Savings Accounts (ISAs). On the 13th March BBCs Ramzan Karmali in anticipation of the Budget 2015 decision, wrote an article entitled: Will tax-free peer-to-peer lending get the go ahead. We explore the benefits of ISA within P2P as we wait expectantly for the decision.
Good news! The Financial Conduct Authority (FCA) has published a consultation paper (CP13/7) detailing its high-level plan for the consumer credit regime.
It has indicated that it will expect peer-to-peer financial services providers like QuidCycle to conduct some form of assessment of the credit worthiness of its borrowers. This is a clear indication that the regulator intends to treat peer-to-peer providers similarly to other lenders, as opposed to advisers or other technology platforms such as comparison sites.