Britain's challenger banks face bumpy ride through Brexit fallout

London

FACING the prospect of their first UK recession, Britain's small specialist lenders could struggle to cope with a downturn, especially in the small and medium-sized enterprise (SME) sector that is their lifeblood.

The promises of the so-called challenger banks, many just a few years old, to improve customer choice and challenge the dominance of big High Street lenders are looking shaky after Britain voted to leave the European Union, some investors and analysts said.