Cynergy Bank has secured a £20m Tier 2 capital facility from British Business Investments. This strategic funding will be utilised across both Cynergy Bank and Cynergy Business Finance.
British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, has provided the new funding. This infusion of capital will play a crucial role in expediting Cynergy Bank’s current business strategy, aimed at establishing itself as the UK’s premier ‘human digital’ bank and a frontrunner in SME lending.
The Tier 2 capital facility’s scope extends to supporting Cynergy Bank’s expansive growth plans, including the ambitious target of delivering over £250m in new-to-bank lending across the SME and property sectors.
Facilitated through British Business Investments’ Investment Programme, this £20m subscription seeks to enrich the financing landscape for smaller businesses by augmenting the lending capabilities of challenger banks and non-bank lenders.
Central to Cynergy Bank’s future growth trajectory is the rollout of their distinctive ‘human digital’ model. This approach blends tailored customer relationship management with the full digitisation of conventional banking products, thereby offering a comprehensive range of digitally powered products and services. This strategy caters to the diverse financial requirements of business owners, property entrepreneurs, and family enterprises.
In 2022, Cynergy Bank registered strong financial performance, achieving a growth of 66% in profit before tax (PBT) amounting to £50.5m. Additionally, a robust 14% net lending growth expanded its total net lending book to £3.3bn.
Nick Fahy, chief executive of Cynergy Bank, said: “This investment is a truly exciting milestone in our commitment to supporting the financial needs of SMEs and businesses in the UK. This additional funding will boost growth in our business and deliver our strategic objectives over the coming years, while also significantly increasing our lending capabilities for SMEs, property entrepreneurs, and family businesses.”
Judith Hartley, CEO of British Business Investments, added: “This £20m Tier 2 commitment to Cynergy Bank supports that mission and will help more smaller businesses across the UK access the capital they need to grow.”
