Chief Executive newsletter - April 2025

In our April Chief Executive newsletter, we share updates on our UK Public and Private Capital Markets report, a recent roundtable we attended on funding for the defence sector, as well as key data releases and consultation responses.

Supporting consumers and businesses

This month our Managing Director of Commercial Finance David Raw attended a roundtable on funding for the defence sector, led by Luke Charters MP and Alex Baker MP. He discussed the role of financial services in supporting the UK defence sector, including in relation to the Ukrainian war effort. Defence companies are a vitally important contributor to our national security and banks provide a significant range of support and lending to them. We discussed some of the points we set out in a recent letter to the MPs, which can be read on our website.

Our latest quarterly Buy-to-Let Lending data which provides insight and trends in lending of borrowers accessing the market, revealed that there were 52,648 new buy-to-let loans advanced in the UK in Q4 2024, worth £9.6 billion.

We published an overview of card spending in 2024, providing insights into the value and volume of transactions made across debit and credit cards. Our data showed that in 2024, UK issued debit and credit cards were used to make 31.4 billion transactions (both here and abroad) – up from 30.2 billion transactions in 2023. We also published our Card spending update, which covered January 2024 card data, and featured data on the outstanding balances on credit cards, card issuance and contactless payments.

We also continued our work on behalf of members to respond to various consultations including:

UK Digital Gilt DIGIT - Preliminary Market Engagement Response where we provided feedback on what is required for a successful digital gilt issuance.

Our comments on the Markets in Financial Instruments Directive Organisational Regulation draft Statutory Instrument – highlighting our support for the continued momentum behind the Wholesale Markets Review as well as noting some areas where further clarity and detail will be helpful.

A response to the Financial Action Task Force’s (FATF) consultation on their Complex Proliferation Financing and Sanctions Evasion Schemes project, pulling directly from the findings within our UK Finance report.

We responded to the FATF’s consultation on changes to their guidance on financial inclusion. Here we placed an emphasis on support for building a framework allowing for the adoption of a true risk-based approach, and the need to allow flexibility in appropriate circumstances.

Our response to the FATF’s second public consultation on changes to guidance regarding Payments Transparency was submitted. This reiterates support towards the goal of making cross-border payments faster, cheaper, more transparent and inclusive whilst remaining safe and secure.

We also issued a response to the Joint Money Laundering Steering Group (JMLSG)’s consultation on proposed revisions to its guidance.

Delivering a high growth economy

On 31 March we hosted David Pinto-Duschinsky MP, Chair of the Financial Markets and Services APPG at A&O Shearman’s offices to mark the launch of our UK Public and Private Capital Markets report. In association with EY, the report outlines how public and private markets support business growth. Based on extensive data analysis and more than 30 qualitative interviews with UK businesses, investors, advisers and market participants, the report shares a series of actions on how UK capital markets can be harnessed to drive growth. The report was well received at the launch event, and has featured in several media publications including Financial News, Politico, City AM and The Economist.

In April’s Monthly Economic Review we looked at the Office for Budget Responsibility’s (OBR) growth outlook, the latest GDP and survey data and the Chancellor’s announcements on investment and spending cuts.

In light of our Digital Innovation Summit – Innovation for a Better Society, retuning this June, our Managing Director of Payments and Innovation, Jana Mackintosh, shared a video detailing what to expect from attending the event.

Preventing economic crime

Our Fraud work this month focused on setting out industry asks for the government’s new Fraud Strategy in a letter to Lord Hanson, underlining the need for those sectors acting as gateways to economic crime to contribute more in proportion to the risk, and do more in partnership with the financial services sector to protect the public. We also took useful steps forward in our stakeholder work with Stop Scams, CDA and Cifas, to ensure our work for members, and UK society, is collaborative, complementary and collectively stronger in driving outcomes in the fight against fraud.

Our Financial Crime and Sanctions team have produced a number of written submissions in recent weeks. We have published our report Countering Proliferation Finance (PF): A Financial Sector Perspective setting out the current regulatory framework for PF, and subsequent approach to risk management undertaken by the financial sector.

We also submitted a response to the Foreign Affairs Committee Call for Evidence on the UK’s sanctions strategy. Our response focused on the aspects of sanctions policy that would benefit from broad and open discussion, setting out our views on how to strengthen implementation and effectiveness of UK sanctions through industry engagement, adoption of a system wide approach and continued international alignment.

Enabling digital innovation

This month we welcomed senior representatives of the HM Treasury and Debt Management Office for a meeting with our members to discuss the Digital Gilt Instrument (DIGIT) procurement process launched by the Chancellor in March. The financial services sector is being invited to help shape DIGIT to support continued innovation and growth. Following the publication of our Digital Gilt Roadmap last year, we look forward to responding to HM Treasury’s DIGIT notice and supporting government and industry to bring to life the recommendations in our Roadmap.

Separately, we co-sponsored a pre-Eurofi industry reception at the British Embassy Warsaw with TheCityUK, City of London Corporation and The Investment Association. Our Managing Director of Payments and Innovation, Jana Mackintosh, delivered the opening remarks at the event, where she highlighted the many opportunities that the UK and EU can work together on. This includes; developing our respective capital markets, transitioning to net zero and embracing digital technology across AI, Blockchain, Quantum and Cloud.

Transitioning to Net Zero  

As the UK government’s Spending Review nears its close and the Department for Energy Security and Net Zero (DESNZ) finalises its Warm Homes Plan strategy, we are stepping up government engagement to deliver the industry’s advocacy priorities. We will issue our own submission on the Warm Homes Plan, building on our 2022 Net Zero Homes paper, in late May. Some of our asks are reiterated in our Plan for Growth, for which UK Finance colleagues recorded a video earlier this month; and a blog on heat pump misinformation.

In the coming weeks, as EU lawmakers aim to progress simplifications to sustainable finance regulation in the Omnibus package, we expect the UK government also to come forward with plans for its own expanded sustainability disclosure regime based on the International Sustainability Standards Board (ISSB) standards. We are preparing for detailed input into the consultations, as well as roundtables with members and regulators.

Upcoming events and training

Invest in your team's future with our flexible training and expert insights.  We offer online, in-person, and hybrid options to fit your needs. See our complete training schedule online.

Join us for our upcoming workshops:  

Preparing for FCA and PRA Supervisory Visits (6 May)
Taking and Evidencing Reasonable Steps (13 May)
AI Governance (3 June)

Join us at the Digital Innovation Summit 2025: Innovation for a Better Society (London, 24 June). Connect with industry leaders and gain valuable insights into the future of finance. Key topics include AI, digital identity, capital markets transformation, sustainable payments, and regulatory developments. Learn how these innovations are shaping a better society through engaging discussions and interactive sessions. View the preliminary agenda and secure your spot now.

24.04.25

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