A not so quiet summer. August industry news
Last month we were pleased to announce a strategic long-term partnership with Aegon to support the growth of UK small businesses. In the first 12 months of a four years program, the initial £160 million investment will help around 2,600 businesses, creating up to 6,400 new jobs. Stephen Barclay, Economic Secretary to the Treasury said, “This partnership with one of the UK’s largest FinTech firms is further proof that the UK remains the global leader in FinTech.” Read more in CityAm. Also, tune in on Bloomberg (skip to 34:00) to hear our CEO and co-founder Samir discuss the news and his vision for the future of small business lending.
By the Horns Brewery is an excellent example of a thriving business that has gone for growth thanks to accessing finance through online lending. The trendy brewery’s loan was funded by the European Investment Fund through our platform, which allowed the team to invest in a new bottling line. Samir recently met with the business owner, Alex Bull, who took him on a tour of his site and discussed how Brexit is affecting his business. With the pound at record lows, British goods are cheaper to export overseas. Read the full story in Bloomberg and learn about the importance of retaining access to capital post Brexit.
As online lending continues to develop, a range of recurring questions have arisen such as: ‘will platforms suffer in an economic downturn?’ and ‘what will happen when interest rates rise?’. Various platforms have conducted stress tests to reveal what could happen to investor returns in times of economic stress, including us. Our results predict that in a deeper and longer-lasting recession than 2008, investor returns are likely to remain attractive. Although as always, capital is at risk. Read more about the potential future growth of the industry in Forbes.
Funding Circle is kicking off a marketing bonanza with a Great British Bake Off TV ad – Business Insider
Shortly after the exciting introduction of our fresh new look, we launched a TV advertising campaign that celebrates those who are Made to do More. Premiered during the Great British Bake Off last week, our TV ads will allow us to reach a wider audience and help bring more amazing businesses to the platform that need your continued support. You can see both adverts on our blog. Feel free to like, share and help us spread the word, so we can continue to help businesses and investors across the UK go further.
And finally, as we announced on 21 August, we will launch a significantly improved and upgraded version of our existing Autobid and Autosell lending tools on 18 September, and the option to manually choose which businesses to lend to will be withdrawn. This change comes with the aim of creating a level playing field for all investors and making lending simpler, better and fairer for all. We appreciate that this is a significant change so if you have any questions or concerns, please provide us with your thoughts here. For more information, check out our blog or read more in AltFi.