Banks told by the FCA to explain low savings rates - Commentary from the CEO of My Community Finance
The FCA has summoned bank executives due to concerns over low interest rates on savings.
While mortgage costs have surged with higher interest rates, savings rates have not increased at the same pace, prompting Chancellor Jeremy Hunt to highlight the urgent need for a solution amid the challenges faced by households grappling with the escalating cost of living.
The leaders of Lloyds, HSBC, NatWest, and Barclays will convene with the Financial Conduct Authority on Thursday.
The CEO of My Community Finance, Tobias Gruber, said: "The FCA's intervention to hold UK's high street banks accountable is a long-awaited battle cry against their unjust practices. Despite making billions from borrowers through swift interest rate hikes in the past year, these banks have shamelessly neglected savers, leaving them in the shadows.
"Passing on interest rates to savers is vital to maintain trust in the banking system, promote responsible saving habits, incentivise individuals, and contribute to overall economic stability".
About Tobias Gruber
Tobias Gruber is the founder and CEO of My Community Finance. For the past 30 years, he's been a prominent leader in investment banking and asset management for some of the sector's most renowned banks, including Credit Suisse, SwissBank, JP Morgan and Morgan Stanley.
Fast forward to 2018, Tobias launched My Community Finance to provide a platform for the financially excluded, helping people to get back on their feet with ethical and socially responsible lending. Within 36 months, My Community Finance has become accountable for 25% of borrowing within the credit union sector.
Tobias has experienced first-hand how certain areas of the finance world are ripe for change and is a passionate advocate for using fintech to help people and solve society's economic problems.
About My Community Finance
My Community Finance is on a mission to transform how its customers manage their money by giving them access to ethical alternatives through two of the U.K.'s biggest credit unions: My Community Bank and Castle Community Bank.
Credit unions give a lifeline to customers who struggle to access mainstream credit by introducing them to financial communities that don't prioritise profits and whose unique regulatory structure means they can offer fairer rates.
Based in London and launched in 2018, My Community Finance is fully authorised and regulated by the Financial Conduct Authority and is a trading name of Amplifi Capital (U.K.) Limited, which has offered ethical and responsible financial products to near-prime consumers since 2015.
