Challenger Banks Continue the Lending Push

Challenger banks doubled their lending operations to $150bn in 2019 from 2012/13 as they push further into traditional banking lines of business; year over year growth slowed to just 3 percent but the amount lent was the highest yet for these firms; Leigh Treacy, Head of Financial Services Advisory at BDO, said to AltFi, “Challenger banks’ use of disruptive technology in digital banking services and improving customer service has helped them quickly acquire new customers. Brexit uncertainty and the economic slowdown seems to be causing some of these banks to temporarily slow down their lending growth.”; the move into lending shows the challenger banks are aiming to keep users from moving to traditional banks or other lenders; the challengers are slowly starting to resemble the incumbent banks they are disrupting as they look towards long term sustainability. Altfi