Wanted: A Bank to Support High Tech and Innovative Firms

By June 10, 2013 Press Releases

More Competition and Choice Needed in Banking Industry toSupport Innovative Firms 

TIGA, the network for games developers and digital publishers,
said today that there was an opportunity for a bank to establish itself as the
premier supporter for high technology and innovative businesses in the UK and
that more competition was needed in the banking sector. 

TIGA made the comments
following the publication of a report by The Big Innovation Centre, an
initiative by The Work Foundation and Lancaster University, that one in three
innovative small firms that sought finance between 2010 and 2012 failed to
obtain funding. The Centre based its findings on data from 11,000 small and
medium-sized enterprises. The Centre noted that innovative firms were less
likely to obtain funding than their peers. 

Dr Richard Wilson, TIGA CEO, said, 

“This report confirms once again that high
technology and innovative firms find it comparatively more difficult to access
bank finance than other firms. This has led many high technology and innovative
firms to operate without bank finance. In the case of the UK games development
sector, a survey of development studios showed that less than a third had a
bank overdraft and only 12 per cent had a bank loan in 2011. 

“There is an opportunity for a bank in the UK to
establish itself as the premier supporter of high technology and innovative
firms. Bank finance will not be the principal source of finance for high
technology and innovative firms as such businesses typically require require
more than just debt capital, but the banks could play a larger and more
positive role than is currently the case. Provision of term loans, bridging
loans and working capital facilities are just some examples. 

“The Government should promote greater competition
in the market for business banking as choice is currently limited. New entrants
into the market such as Silicon Valley Bank and Metro are extremely welcome but
more needs to be done to expand choice within the market.”   

Notes to editors:

TIGA is the trade association representing the UK’s
games industry. The majority of our members are either independent games
developers or in-house publisher owned developers. We also have games
publishers, outsourcing companies, technology businesses and universities
amongst our membership. Since 2010, TIGA has won 14 business
awards and has been nominated a finalist for 16 other awards.   

TIGA’s vision is to make the UK the best place in the world to do games
business.  We focus on three sets of activities: political representation,
generating media coverage and developing services that enhance the
competitiveness of our members.  This means that TIGA members are
effectively represented in the corridors of power, their voice is heard in the
media and they receive benefits that make a material difference to their
businesses, including a reduction in costs and improved commercial
opportunities.

For further information, please contact Dr Richard Wilson, TIGA CEO on:
07875 939 643, or email: richard.wilson@tiga.org.

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