Challenger Cynergy Bank secures £20m funding boost
Challenger bank Cynergy Bank has secured a £20m Tier 2 investment from British Business Investments in a boost for its expansion plans.
The funding will go towards supporting Cynergy Bank’s growth plans, which include delivering over £250m of new lending across the SME and property sectors.
The challenger bank was formerly a part of the UK-listed Bank of Cyprus. It was launched in 2018 after the Bank of Cyprus spun out its UK operation in a £103m deal to the Cynergy consortium.
It primarily focuses on London-based businesses. In 2022, the lender achieved a pretax profit of £50.5m, with net lending growth of 14 per cent bringing its total net lending book to £3.3bn.
Nick Fahy, chief executive, 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 coming years, while also significantly increasing our lending capabilities for SMEs, property entrepreneurs and family businesses,” Fahy said.
Cynergy is one of a number of challenger banks who have broken into the SME lending space over the past few years.
The investment from British Business Investments comes as part of a programme to increase the supply of finance to small businesses by boosting the capacity of challengers and non-bank lenders.
British Business Investments is a wholly-owned subsidiary of the state-backed British Business Bank, which exists to support domestic businesses.
Judith Hartley, chief executive of 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,” Hartley continued.