Cynergy Bank Obtains £20M Tier 2 Capital Facility from British Business Investments

Cynergy Bank announces that it has secured a £20 million Tier 2 capital facility from British Business Investments.

The capital will be deployed “across Cynergy Bank and Cynergy Business Finance.”

The new funding from British Business Investments, “a wholly-owned commercial subsidiary of the British Business Bank, will enable the challenger bank to accelerate the delivery of its current business strategy to be the UK’s premier ‘human digital’ bank and market leader in the SME lending space.”

The Tier 2 Capital facility will also “support Cynergy Bank’s growth plans, which includes delivering over £250m of new-to-bank lending across the SME and property sectors.”

The £20m subscription has been provided “through British Business Investments’ Investment Program, which is designed to increase the supply and diversity of finance for smaller businesses by boosting the lending capacity of challenger banks and non-bank lenders.”

Cynergy Bank’s future growth plans “will be underpinned by the rollout of their ‘human digital’ model, combining tailored customer relationship management with the full digitization of traditional banking products, providing an enhanced range of digitally enabled products and services that serves the blended financial needs of business owners, property entrepreneurs and family businesses.”

In 2022, Cynergy Bank achieved “a profit before tax (PBT) growth of 66% to £50.5m, with a 14% net lending growth bringing its total net lending book to £3.3bn.”

Nick Fahy, Chief Executive, Cynergy Bank, comments:

“We’re pleased to be working with British Business Investments, and 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 coming years, while also significantly increasing our lending capabilities for SMEs, property entrepreneurs and family businesses.”

Judith Hartley, CEO, British Business Investments, said:

“At British Business Investments, our mission is to increase the overall supply and diversity of finance for smaller businesses across the UK. 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.”

As noted in the update, Cynergy Bank was “established in 2018 by entrepreneurs to serve the needs of business owners, property entrepreneurs and family businesses.”

They claim to “have a strong track record supporting businesses that want to scale up and provide over £3bn lending to scaling businesses across the UK, they also offer retail deposits to UK savers.” Their vision is “to provide a truly personalised service that is delivered through face-to-face relationships and enhanced by the latest technology.”

At Cynergy Bank they recognize that their customers’ personal and professional lives often overlap. Their mission is “to help empower them to achieve their ambitions by serving all their interdependent banking needs.” They provide a range of digitally enabled products and services “to meet the property finance, business and commercial banking, private banking and personal savings needs of their customers.”

Cynergy Bank has signed partnership agreements “with Google Cloud and Wipro Limited to continue to innovate in the human digital space.”

Cynergy Bank is “a UK bank, authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.”

Eligible deposits are “protected up to a total of £85,000 by the UK Financial Services Compensation Scheme.”

Cynergy Bank was established “following the acquisition of a UK based community bank in 2018.”

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