Ed Miliband has announced that he would, if elected, curb the monopoly of major banks that prevent SME’s from accessible financing.

Amidst condemnation from Tories that his policies ‘are all over the place’ Miliband intends to introduce two ‘challenger’ banks to create a more competitive High Street and open funding up to small enterprises.

However, whilst introducing competition, his creation of two new banks has yet to reveal how funding for SME’s would be improved, with Vince Cable suggesting “What his proposals don’t clearly indicate is exactly what kind of bank is he trying to create?”

Figures released by AltFinanceNews.com show that disillusioned limited companies and small firms are continuing to lose faith in High Street banks and have turned to the alternative financial sector instead with lending in the area recently topping the £1billion mark.

The burgeoning sector which includes peer-to-peer lending, crowdfunding and invoice lending, means banks will need to up their game in order to compete with the plethora of financial resources out there gaining weight.

The industry’s growth rate is on the rise again with AltFinanceNews.com expecting lending to exceed £100million in 2014.