FCA: Review finds weaknesses in some challenger banks’ financial crime controls
- FCA has found that challenger banks need to improve how they assess financial crime risk
- In some instances, challenger banks did not have financial crime risk assessments in place for their customers
- Raising concerns about the adequacy of these banks’ checks when taking on new customers
- Challenger banks aim to compete with traditional high street banks using smarter technology and more up-to-date IT systems
- Many are recent entrants to the UK financial markets, with online only business models
- The review focused on challenger banks that were relatively new to the market and offered a quick and easy application process
