Editorial & Advertiser disclosure

Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home > Top Stories > CMA ORDER WILL REVOLUTIONISE SME LENDING – EQUIFAX COMMENTS

CMA ORDER WILL REVOLUTIONISE SME LENDING – EQUIFAX COMMENTS

Published by Gbaf News

Posted on August 5, 2016

5 min read

Last updated: January 22, 2026

CMA ORDER WILL REVOLUTIONISE SME LENDING – EQUIFAX COMMENTS - Top Stories news and analysis from Global Banking & Finance Review

On 9 August 2016, the Competition and Markets Authority (CMA) is due to order major high street banks to produce new loan eligibility tools to address the lack of competition in SME lending
The CMA is expected to give banks just six months to implement these tools
Challenger banks should follow suit to remain attractive to SMEs
Initiative will improve transparency for SMEs, save time and make it easier to access the best bank rates

On 9 August 2016, the Competition and Markets Authority (CMA) is due to order seven major high street banks to produce new loan pricing and eligibility tools to address the lack of competition in SME lending. They are expected to be given just six months to do this.

Nic Beishon, Head of Commercial, Equifax UK & Ireland at Equifax, comments on how this new initiative will revolutionise lending for SMEs, and the challenges for banks in meeting the deadline.

“The CMA’s retail banking market investigation has shown that many SMEs turn straight to their current account provider when they need a loan, rather than shop around for the best rate. By forcing the big banks to implement new lending tools, the CMA intends to simplify and speed up applications to encourage competition in the sector. While the new tools can be implemented without lengthy and costly internal IT changes, banks must act now to ensure SMEs can easily access the best finance deals within the six month window.

“The current state of play is costing SMEs time and money. In 2015, we estimate SMEs collectively spent nine and a half years applying for loans – almost one year of this was by customers who went on to be declined. The new tools will circumnavigate the full underwriting process to provide quick but reliable indications of eligibility for credit, as well as an indicative APR. The new tools will see laborious form filling cut from as long as an hour to a matter of minutes.

“The CMA is focusing on seven banks in the initial stages, but any bank serious about targeting SMEs, including the challengers, should introduce the same tools to ensure their offering remains attractive. Otherwise they run the risk that customers turn to the banks with the easiest application tools.

“SMEs are vital to the UK. As part of its support for the UK economy, The Bank of England intends to free up capital for lending, but it’s important that businesses can access this capital at competitive rates. The new initiative from the CMA is a very positive step towards improved transparency and access in SME lending, boosting competition in the market and opening up more attractive products and rates for SMEs.”

The order will be part of the CMA’s final report on its ‘Retail banking market investigation’. The provisional report issued in May cited the HSBC loan eligibility tool developed with Equifax as the most advanced it is aware of on the market.

On 9 August 2016, the Competition and Markets Authority (CMA) is due to order major high street banks to produce new loan eligibility tools to address the lack of competition in SME lending
The CMA is expected to give banks just six months to implement these tools
Challenger banks should follow suit to remain attractive to SMEs
Initiative will improve transparency for SMEs, save time and make it easier to access the best bank rates

On 9 August 2016, the Competition and Markets Authority (CMA) is due to order seven major high street banks to produce new loan pricing and eligibility tools to address the lack of competition in SME lending. They are expected to be given just six months to do this.

Nic Beishon, Head of Commercial, Equifax UK & Ireland at Equifax, comments on how this new initiative will revolutionise lending for SMEs, and the challenges for banks in meeting the deadline.

“The CMA’s retail banking market investigation has shown that many SMEs turn straight to their current account provider when they need a loan, rather than shop around for the best rate. By forcing the big banks to implement new lending tools, the CMA intends to simplify and speed up applications to encourage competition in the sector. While the new tools can be implemented without lengthy and costly internal IT changes, banks must act now to ensure SMEs can easily access the best finance deals within the six month window.

“The current state of play is costing SMEs time and money. In 2015, we estimate SMEs collectively spent nine and a half years applying for loans – almost one year of this was by customers who went on to be declined. The new tools will circumnavigate the full underwriting process to provide quick but reliable indications of eligibility for credit, as well as an indicative APR. The new tools will see laborious form filling cut from as long as an hour to a matter of minutes.

“The CMA is focusing on seven banks in the initial stages, but any bank serious about targeting SMEs, including the challengers, should introduce the same tools to ensure their offering remains attractive. Otherwise they run the risk that customers turn to the banks with the easiest application tools.

“SMEs are vital to the UK. As part of its support for the UK economy, The Bank of England intends to free up capital for lending, but it’s important that businesses can access this capital at competitive rates. The new initiative from the CMA is a very positive step towards improved transparency and access in SME lending, boosting competition in the market and opening up more attractive products and rates for SMEs.”

The order will be part of the CMA’s final report on its ‘Retail banking market investigation’. The provisional report issued in May cited the HSBC loan eligibility tool developed with Equifax as the most advanced it is aware of on the market.