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Brexit exodus? Some banks spy an opportunity

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World

Brexit exodus? Some banks spy an opportunity

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COMING UP:Brexit exodus? Some banks spy an opportunity

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00:00:00
>> Chicken wraps and baked fries are caught up in a banking battle and Brexit aftermath. This restaurant among the small firms turning to a new breed of lender for funding. In London, I'm Reporter Julian Satathuat. Despite all the uncertainty of the Brexit plenty of firms, like this fast food chain are still eager to borrow money.
00:00:19
But some are finding that the big high street banks aren't too keen to lend. And that could open an opportunity for nimble new lenders. Leon had no gripes with its usual bank, HSBC. But after the Brexit vote it got its latest loan from a small startup lender, OakNorth.
00:00:36
It's one of several new outfits setup to challenge the big names. Founder, Rishi Khosla, was against Brexit, but now he is accentuating the positive.>> If you look at the impact on the business what happen is the major banks has become much more conscious on their lending and much more aware of the current positions within their loan books.
00:00:56
And that's meant that they've slowed down new lending to a certain level, which is actually helping us pick up additional volume.>> Since the June Brexit vote, Closler says his lending has doubled. And he says there is no lack of applicants.>> You've still got the growth minded entrepreneurs who say, in times of turmoil, opportunities actually arise.
00:01:16
After Brexit, London could lose many financial jobs. The British Banking Association says, major lenders could start moving stuff out early next year. Start ups won't be able to replace the 75,000 jobs that an industry group says could go. Nor can they provide the tens of billions of pounds in loans their economy needs.
00:01:36
But if they stay bullish, little lenders like OakNorth may soon be getting a lot of unsolicited CVs.