Cynergy bank secures £20 million fund from British Business Investments

The new funding will accelerate the challenger bank’s ambition to cement its position as the UK’s premier ’human digital’ bank and a market leader in SME lending.

The funding from British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, will be made from its Investment Programme and is aimed at diversifying and expanding financial options for smaller businesses by increasing the lending capacity of challenger banks and non-bank lenders.

The newly acquired capital will be spread across both Cynergy Bank and Cynergy Business Finance which will also facilitate Cynergy Bank’s growth plans – to include over £250 million of new-to-bank lending within the SME and property sectors.

Cynergy Bank’s ’human digital’ model integrates personalised customer relationship management with a digitisation of traditional banking products and services. These are tailored to meet the evolving financial requirements of business owners, property entrepreneurs, and family-run enterprises.

Cynergy Bank’s commitment to its growth strategy can be seen its recent activities. In 2022, the bank recorded a remarkable 66% growth in profit before tax (PBT), reaching £50.5 million, with a 14% surge in net lending, contributing to a net lending book totalling £3.3 billion.

Nick Fahy, Chief Executive of Cynergy Bank, expressed his enthusiasm for the partnership with British Business Investments, highlighting the pivotal role this investment will play in achieving the bank’s strategic objectives. Fahy emphasized that the additional funding will invigorate business growth while significantly enhancing lending capabilities for SMEs, property entrepreneurs, and family businesses.

Judith Hartley, CEO of British Business Investments, echoed Fahy’s sentiments, emphasizing the organization’s commitment to broadening the finance landscape for smaller businesses across the UK. Hartley praised the £20 million Tier 2 commitment to Cynergy Bank, underscoring its role in facilitating access to vital capital for the growth and prosperity of small businesses throughout the country.