Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. 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.


By Elizabeth Howcroft

LONDON (Reuters) – Britain’s digital banks will need support over the next few weeks and months to help them cope with the market fallout from the collapse of Silicon Valley Bank, a trade body representing UK fintechs said on Friday.

Investor confidence in the global banking sector has been shaken in recent weeks by the demise of Silicon Valley Bank, the collapse of a large U.S. regional lender and the emergency rescue of Swiss giant Credit Suisse.

Silicon Valley Bank’s UK arm, which had focused on tech start-ups, was bought by HSBC in a deal facilitated by the UK government and the Bank of England after more than 250 UK tech executives warned that its failure would pose an “existential threat” to their sector.

Industry, government and regulatory bodies must now work together to protect customers and businesses amid “a concern that there may well be more disruption coming our way from across the finance ecosystem,” Janine Hirt, CEO of trade body Innovate Finance, said in a statement sent to Reuters.

Neobanks are not immune to the current market conditions, and it is important that steps are taken to ensure they have the support over the course of the coming weeks and months,” she said. A neobank, or digital bank, is a bank whose services are accessed via an app or website as opposed to having physical branches.

Hirt did not elaborate on the type of support needed.

The CEO of hedge fund Man Group told a conference in London last week that the banking turmoil sparked by the collapse of Silicon Valley Bank is not yet over, and he believed a significant number of banks will fail within two years. He said that challenger banks – lenders which are usually smaller and newer than the big high-street banks – in Britain could be at risk.

Hirt said that Innovate Finance has been offering “close support” to challenger banks to help them navigate the “turbulence” in the sector.

The Bank of England and the British government have said that the country’s banking system is well capitalised and funded.

BoE governor Andrew Bailey told lawmakers this week that the central bank was on alert amid the global turmoil, but added that Britain was not experiencing stress linked to the demise of Silicon Valley Bank.


(Reporting by Elizabeth Howcroft; Editing by Mark Porter)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts