LONDON, Dec 17 (Reuters) - Britain may be facing a banking revolution as technology transforms business lending and the dominance of its banks, a senior Bank of England official told the Independent newspaper on Monday.
“The mono-banking culture we have had since the 1990s is in retreat,” said Andy Haldane, the BoE’s executive director for financial stability.
“We are seeing a much more diverse eco-system emerging with the growth of new non-bank groups offering peer-to-peer lending and crowdfunding which are operating directly with a wider public,” he said.
Peer-to-peer lenders directly match up firms in need of cash with investors, and so-called crowdfunding, raises small amounts from a large number of funders.
“I am congenitally pessimistic about most things in life but on this I am really optimistic: it’s a time of opportunity knocking for finance,” he said.
Haldane, a member of the BoE’s Financial Policy Committee, which from next year will take the lead in British bank regulation, also said he saw no reason why finance would remain largely altered by technological advances.
“Technology has changed every other industry such as film, music and even football clubs, so why not finance? With open access to borrower information - which is held centrally and virtually - there is no reason why end-savers and end-investors cannot connect directly,” he said.