Chief Executive newsletter - March 2025

In our March Chief Executive newsletter, we share updates on our published Plan for Growth, a recent parliamentary drop-in event at the House of Lords, work we’re doing with the International Regulatory Strategy Group, as well as our key data releases and consultation responses.

Supporting consumers and businesses

This month we published our Business Finance review. This reported on the finance needs of small and medium-sized enterprises (SMEs) in the fourth quarter of 2024 and the year as a whole. David Raw, our Managing Director for Commercial Finance, said: “2024 was a more positive year for SMEs, with demand for new finance turning a corner compared to the previous year. Gross lending by the main high street banks was up and we also saw increases in the number of loan and overdraft approval numbers.”

We released our latest Household Finance Review for Q4 2024, which explores trends in household spending, saving, and borrowing. It shows that the mortgage market strengthened in Q4 2024, with both first-time buyers and home mover numbers up by almost a third compared to a year ago, and forward-looking data suggests this will persist through the first quarter of 2025.

The most recent Card spending update was published. This covers the monthly value and volume of transactions across debit and credit cards, both in the UK, and of UK-issued cards across the world. This data also covers 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 Finance response to CMA Strategic Steer consultation. In this, we responded to the Department for Business and Trade’s (DBT) consultation on its Strategic Steer to the Competition and Markets Authority (CMA).

UK Finance response to the Financial Conduct Authority’s (FCA) Discussion Paper (DP24/4) to inform the development of rules for cryptoasset admissions and disclosures (A&D) and cryptoasset market abuse (MARC).

UK Finance and AFME respond to FCA CP25/2 on further changes to the public offers and admissions to trading regime and UKLR.

A response by UK Finance to the PRA’s Consultation Paper on introducing the Basel Committee’s Large Exposures standards (LEX). We were supportive of the aim to align the UK Large Exposures (LE) regime with the internationally agreed standards.

UK Finance response to OBL Consultation on Multilateral Agreement (MLA) for Commercial Variable Recurring Payments (cVRPs).

Delivering a high growth economy

After submitting to government our Plan for Growth in early March, we have published this on our website. It shares the views from across our membership and thoughts on the reforms needed to help the financial services sector make an even stronger contribution to the government’s growth agenda, while also delivering benefits for consumers, businesses and society.

In this month’s Monthly Economic Review we dive into the latest growth data for the UK for the final quarter of 2024 and take a look at the latest outlook for the economy from the Bank of England as it cut the Bank Rate again in February.

On the 25 March we ran a parliamentary drop-in at the House of Lords, alongside TheCityUK, City of London Corporation, Association of British Insurers, Investment Association, BVCA. Throughout the afternoon we spoke with parliamentarians to highlight the role of financial services in driving economic growth and supporting consumers and businesses.

Preventing economic crime

Our Women in Sanctions network came together for a reception in honour of International Women’s Day. The theme of the discussion was “Accelerate Action: reflecting on three years of Women in Sanctions.” Sanctions are a powerful tool which can change the behaviour of dangerous people who threaten our country, and our allies. Aminah Samad, our Director of Financial Crime, closed with the announcement that this year the Women in Sanctions network is expanding to become Women in Sanctions and Economic Crime.

The DCPCU published its end of year report and highlighted activity from Operation Henhouse. Co-ordinated by the National Economic Crime Centre (NECC) and the City of London Police, this operation focused on combating fraud. Throughout the operation, the unit carried out 22 arrests, executed 13 warrants and over £258,000 in seizures, including both cash and non-cash assets. The Unit’s Head of Fraud Prevention and Training, Catriona Still, carried out several branch visits educating staff and customers on all topics fraud and scam related. This included ATM fraud, distraction thefts, telephone scam calls and more.

Transitioning to Net Zero 

The international political environment is creating new challenges for firms in sustainability regulation: pressures in the US to step away from ESG issues are conflicting with regulatory expectations in the UK and EU. We are working to support members through this challenging landscape. Working with the European Banking Federation and other international counterparts, we submitted representations to EU institutions this month to ensure the European regulatory landscape does not place undue burden on members.

Meanwhile, we also supported the International Regulatory Strategy Group to publish a report on 13 March on how global regulators can support international coherence by implementing the International Sustainability Standards Board’s reporting baseline. We held a briefing with Deloitte on major changes to EU sustainability disclosure and due diligence regulations.

In the UK, we are engaging closely with the Department for Energy Security and Net Zero (DESNZ) on a range of policy initiatives to support energy efficiency and low-carbon heating in homes, drawing on our long-running Net Zero Homes workstream. We submitted evidence to inform the government’s reform of Energy Performance Certification, which was covered widely in Politico and trade press.

Upcoming events and training

We provide flexible training and expert insight. These can be in the form of online, in-person, or hybrid training options to fit your schedule. The full programme is available online.

Operational risk workshops:

These workshops ensure attendees stay ahead of regulatory changes. Our options include: Best Practices for Risk Reporting, (14 April), Incorporating ESG into Frameworks (28 April), Embedding Risk Culture (12 May) and the Future of Operational Risk Discipline (19 May).

Vulnerability and Consumer Duty Academy:

Strengthen consumer protection and meet regulatory responsibilities with our award-winning Vulnerability and Consumer Duty Academy – Spring 2025, 8 April.

Industry flagship event:

Join industry leaders and policymakers at DIS 2025 – Innovation for a Better Society on 24 June.

Area of expertise:

UK Finance

27.03.25

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Key Conversation: Fraud

On 2 June, we are hosting our first Key Conversation: Fraud, to coincide with the launch of our Annual Fraud Report. Join us and hear from our expert panels who will provide valuable insights through the key themes, including Cyber Fraud, AI, Money Mules and cross-sector.