Funding Circle (LSE: FCH) has noted that the UK is pushing forward with its national growth agenda and small and medium-sized enterprises (SMEs) stand ready to invest, expand, and innovate following years of economic uncertainty. Yet traditional high-street banks have continued to limit lending, widening the finance gap that risks holding back broader recovery. A new independent study highlights how fintech platforms are filling this critical void, delivering outsized benefits to the economy.
According to research from Oxford Economics, conducted in partnership with Funding Circle, the UK’s SME lending platform, the company’s activities in 2025 produced a remarkable £7.9 billion contribution to national GDP.
This impact stemmed from £3 billion in active loans under management, demonstrating the powerful multiplier effect of targeted alternative finance.
The ripple effects extend far beyond headline GDP figures. Funding Circle’s lending helped sustain 117,000 jobs nationwide — the equivalent of roughly one in every 320 positions across the entire UK workforce.
It also generated £2.2 billion in tax revenues for the public purse, an amount comparable to the combined annual salaries of about 58,000 nurses. The efficiency of this model is striking.
For every £1 million advanced through the platform, £2.7 million was added to UK GDP and 39 jobs were supported.
These outcomes underscore how quickly and effectively capital deployed to SMEs circulates through supply chains, wages, and local spending.
Geographically, the support reached every corner of the country.
Funding Circle extended financing to businesses in all 650 parliamentary constituencies, with an average of £2 million per area.
In certain underserved regions, its role proved especially vital: the platform represented as much as 25 per cent of SME lending in places such as Warrington North and Bolsover.
This nationwide reach helps address longstanding regional inequalities in access to capital. Sector-wise, the lending focused on foundational parts of the economy.
Retail and wholesale firms accounted for 22 per cent of active loans, while construction made up 17 per cent and professional services 11 per cent.
These are precisely the types of businesses that drive high streets, build infrastructure, and deliver everyday services across communities.
Lisa Jacobs, Chief Executive Officer of Funding Circle, emphasized the broader significance: SMEs form the backbone of the British economy, powering growth, employment, and local vitality.
The study illustrates the substantial multiplier that occurs when flexible funding reaches the real economy — delivering £7.9 billion to GDP and backing 117,000 jobs.
Ultimately, ensuring small businesses receive the support they need benefits everyone.
The Oxford Economics analysis drew on detailed loan-book data as of 31 December 2025, including turnover and asset figures benchmarked against official Office for National Statistics sector averages.
Its findings arrive at a critical time-period, as UK policymakers seek ways to accelerate private-sector investment and close persistent financing gaps.
By providing flexible and data-driven capital, Funding Circle and similar fintechs are helping individual businesses thrive as well as strengthening the foundations of UK-wide economic approaches and strategies.