Earlier this month, Lloyds Banking Group (LBG) came under fire over its decision to cut 1,340 bank staff.

Now, with a well-established trend of challenger banks hiring staff from mainstream institutions, Bridging & Commercial sought to ascertain whether a potential influx of experienced bankers would be of benefit to the challenger market.

Mark Sismey-Durrant, chief executive officer at Hampshire Trust Bank, explained that a balance must be struck between experience and innovation.

“While we are committed … to developing younger, talented staff in-house, our starting point is to ensure we have the necessary experience in-house to meet the expectations of our SME customers,” Mark admitted.

“[However,] while we do not seek to reinvent the wheel, it is important to have people on board that have new ways of looking at things [and] that can identify innovative ways to meet the changing needs of our customers.

“We are always challenging ourselves to be better and the fresh perspective that new talent can bring is invaluable.”

This view was reinforced by Richard Doe, managing director at Paragon Bank.

“Across the industry there is a general trend towards greater levels of competition and away from the dominance of the big, high street banks.

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“Fresh blood and fresh ideas help us stay one step ahead in a dynamic sector.” 

On the other hand, there is much evidence to suggest that bankers with experience at mainstream institutions are in high demand within the challenger market.

In October, Metro Bank recruited a former managing director at NatWest and a former UK head of liquidity solutions for SME banking at LBG.

Similarly, last week, challenger bank Cambridge & Counties hired a former associate director at Lloyds Bank as its new business development manager for the North and Scotland.

Indeed, Paul Lynam, CEO at Secure Trust Bank, told Bridging & Commercial that appointing experienced bankers often proved to be a mutually beneficial arrangement.

“[We have] been delighted to recruit a number of hand-picked staff from much larger banks.

“These bring a wealth of banking experience, which allied to [our] rapid decision making, enables them to offer much better service to customers than they could in their slower-moving and more bureaucratic former employers.

“The new recruits enjoy being able to spend more time doing good old-fashioned relationship banking and their ability to respond proactively to customers’ requests gives [us] a competitive advantage.”