#smallBizAU: banks must be required to pass them on to alternative providers if they don't want to lend

I was reminded recently of the story behind the new regulation in the UK that when banks say no to businesses applying for credit, they must now refer them to alternative providers.

 

This came about when Adam Tavener attended an Innovators in Finance summit at Downing Street at the start of 2013.

‘I was walking over Westminster Bridge thinking "if I’m going to this thing I might as well have something decent to say". I thought ideally, what would I like out of this?

He stood up at the event and suggested that the best way to help small businesses with the funding gap would be if banks were forced to pass them on to other providers if they didn’t want to lend to them. Lo and behold, legislation is currently passing through Parliament that should make that the case.

Small Business, Enterprise and Employment Act 2015

Wouldn't it be great if this happened in Australia some day?