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I previously worked as a developer for a startup regulated by the Gambling Commission (which coincidentally was formerly situated in the same building and adjac

I previously worked as a developer for a startup regulated by the Gambling Commission (which coincidentally was formerly situated in the same building and adjacent to the Smarkets team, both having raised money from Passion Capital), and we experienced the same problem with Barclays, i.e. a letter informing us our custom was no longer welcome. It's not a question of Smarkets being a startup that their account has been closed, as the title suggests. I believe that the current British banking climate is overtly hostile to companies of a gambling nature, unless they are very large and well established. My previous employer found it extremely difficult to obtain even basic banking services after being shut out by Barclays. I'm ignorant of the process which lead the bank to deem Smarkets inordinately risky, but it's somewhat unconscionable that a nationalised bank should treat them in this way. RBS should be stimulating economic growth, facilitating job creation, and ultimately creating value for the economy; shutting the door on Smarkets, a viable business is incompatible with that notion. As I say, I do not have a full appreciation of the bank's logic for this decision, nor do I know Smarkets' position, exposure, etc. However, I have known Smarkets for some two years and seen them grow steadily and reliably over that period, without a blip. I certainly find the bank's decision surprising.

Isofarro 15y ago
I just find it laughable that RBS is effectively admitting their understanding of risk management is very low indeed. That their organisation didn't mitigate against the risk of subprime mortgage defaults that would turn one of their main assets into a valueless piece of paper; and yet close down accounts of Smarkets without much of an assessment. I'm not a risk taker by nature, and Smarket's approach to mitigating exposure/risks is an interesting, yet soundly logical. Bailed out banks like RBS/Natwest can learn a thing or two from Smarkets of how to resposibly manage risk.

Isofarro 15y ago

I just find it laughable that RBS is effectively admitting their understanding of risk management is very low indeed. That their organisation didn't mitigate against the risk of subprime mortgage defaults that would turn one of their main assets into a valueless piece of paper; and yet close down accounts of Smarkets without much of an assessment. I'm not a risk taker by nature, and Smarket's approach to mitigating exposure/risks is an interesting, yet soundly logical. Bailed out banks like RBS/Natwest can learn a thing or two from Smarkets of how to resposibly manage risk.