Alt Lending Week Ending 2nd Septermber 2022

Bank of England’s Clear Failings

Liz Truss looking set to be the UK’s next Prime Minister intends to review the Bank inflation target. Not a bad idea if you meant to judge things on results. I still don’t understand why anyone is surprised that when you appoint a serial underperformer they underperform in the next turn of the merry go round. Then it turns out that the incumbent has a fixed term contract and is practically in situ for life no matter what they do. Another blatant example of jobs for the boys where incompetence begets incompetence and the poor taxpayers of the UK pick up the ever increasing tabs through taxes and loss of earning power. Martin van der Weyer however hints that if you want to increase performance levels then start looking for people at the top that understand where things are going badly wrong. Concentrating on diversity and other such spurious issues gets us all nowhere. Bailey does not appear to be very good at his job. The people of the Uk don’t have time to wait for a replacement that knows what he/she/it is doing.

Regulators worry about Cloud processing dominance

To be honest I tend to think that the inexorable rise of institutions relying on the cost and efficiency of moving processing to the cloud is a bit of a red herring. After all security within the cloud is much better than it is in Financial Institutions own servers which with the best will in the world contain Jurassic software on millions of unpatched and therefore insecure applications. Regulators could spend more productive time trying to understand what is actually going on and where banks and other movers of money are contributing to higher risk profiles. The Bank of England used to be pretty good at this. Markets determined best practice and regulators generally copied it. Result well run markets. Regulators deciding what best. Result chaos.

Banks Pull Landlord Mortgages

Looks like the recent rises in interest rates and the dire warnings of more to come have spooked the buy to let mortgage market after a recent flurry in activity as landlords looked to hedge against even higher rates which may be on the way. Not surprising really but an indication of what a shocking state our market are in. Perhaps someone should ask the Bank of England what to do.

Howard Tolman is a well-known banker, technologist and entrepreneur in London,  We have a self imposed constraint of 3 news stories per week because we serve busy senior  Fintech leaders who just want succinct and important information. For context on Alt Lending please read the Interview with Howard Tolman about the future of Alt Lending and read articles tagged Alt Lending in our archives. Daily Fintech’s original insight is made available to you for US$143 a year (which equates to $2.75 per week). $2.75 buys you a coffee (maybe), or the cost of a week’s subscription to the global Fintech blog – caffeine for the mind that could be worth $ millions.