Covid-19 has forced banks to take cost out of their businesses

Transitioning will be costly

Kathleen Gallagher
clock • 2 min read
Covid-19 has forced banks to take cost out of their businesses

The coronavirus pandemic has “paralysed” the banks, leaving non-bank lenders with plenty of opportunities to offer financing to areas such as the transition to net zero and “trendy” lending platforms, according to Matthew Potter, manager of the Honeycomb investment trust.

Covid pushed banks to "accelerate their ability to take cost out of their business," Potter said. This means they are leaving behind markets where customers still need to be served, a gap that will be filled by non-bank lenders. One theme presenting significant opportunities for the £628.6m trust is the transition to net zero.  Around 40% of emissions come from UK households, according to the Committee on Climate Change, and the cost of transitioning these homes is going to be expensive, Potter highlighted.  "There are lots of themes around businesses setting up to finance househol...

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