UK Firms Look to Combine into One Lobbying Power

Major players in the UK banking scene are looking to combine forces into one lobbying power in order to enact major reforms in banking regulations.

As the financial technology sector blossoms in London and elsewhere in the UK, the government has tried sincerely to create an environment of transparency and competition to accommodate the young industry. But some of the bigger firms are concerned that the changes are not adequate enough and need major reform.

Under the proposal, the British Bankers’ Association, the Council of Mortgage Lenders, Payments UK, Asset Based Finance Association and the UK Cards Association would be combined into on lobbying entity. The aim of the combination would be to increase efficiency by reducing costs while increasing lobbying effectiveness.

The call for the merger came from nine of Britain’s largest banks, including HSBC, Barclays and Lloyds Banking Group. Part of the concerns for the British banks are incoming European regulations from the European Union government.

The banks cited a reported from the Centre for the Study of Financial Innovation, which showed the high-cost of trade association membership combined with a significant overlap of association membership between the banks. Another review of the merger showed that association fees could be slashed by up to 30%.

The merger proposals are yet another move by British firms to stay ahead of the game. London has been called the fintech capital of the world, partially due to the effectiveness and active role the government has played in innovating, adapting and accommodating the growing fintech sector.