UK-based Cynergy Bank has received a GBP 20 million Tier 2 capital facility from British Business Investments to be used across Cynergy Bank and Cynergy Business Finance. British Business Investment’s funding will allow the bank to advance the delivery of its business strategy to become the UK’s human digital bank and market leader in the SME lending area.

Moreover, the Tier 2 capital facility will aid Cynergy Bank’s expansion plan which includes providing over GPB 250 million of new-to-bank lending in the SME and property sectors. The funding has been supplied through the Investment Programme, created to increase the supply and diversity of finance for smaller businesses by increasing the lending capacity of challenger banks and non-bank lenders. Cynergy Bank’s expansion plans will represent the foundation for the deployment of their human digital model, merging tailored customer relationship administration with the complete digitisation of traditional banking products.

By providing an improved range of digitally enabled products and services, the bank will serve the combined financial needs of business owners, property entrepreneurs, and family businesses. According to the bank’s officials, the additional funding will increase the growth of their business and deliver their strategic objectives over the following years, while also growing lending capabilities for SMEs, property entrepreneurs, and family businesses. SMEs in the UK As per Statista’s report, in 2022, there were approximately 5.5 million small and medium-sized businesses functioning in the UK.

However, most SMEs are micro-sized enterprises, the number reaching 5.25 million, while small and medium businesses account for 217,300, respectively 35,900. The COVID-19 pandemic impacted businesses in the UK, with the number falling by 6.5% between 2020 and 2021. The Minister for Enterprise, Markets and Small Businesses has released their action plan for SMEs for the 2022-2025 period in January 2023, aiming to support their growth and provide opportunities to improve UK businesses.

Considering the wider economic and international context, BEIS’, the government department responsible for energy security and delivering net zero, priorities regarding SMEs include: Generating inexpensive, clean, homegrown energy and delivering the government’s commitment to net zero emissions by 2050; Providing innovation; Increasing enterprise, while supporting families with the cost of living; Driving economic recovery from COVID-19. Moreover, BEIS has been developing an Enterprise Strategy for small and medium businesses that aim to increase opportunities by levelling up economic activity across the UK, increasing productivity and creating high-value jobs, and improving the national security regime. .