- Britain's challenger bank, TSB, announces that its parent, Sabadell, has agreed to provide up to £100 million of funding to invest in Britain's small businesses, with an initial tranche of investment set at £30 million.
- This move supports TSB's plans to expand its focus on small business banking - a market in desperate need of competition.
TSB is starting to put the pieces in place to bring much needed competition to the UK small business banking market in 2018. The small business banking market is dominated by the big banks that control over 90% of the market between them. TSB believes real competition is needed in this market to break the shackles the big banks have had on Britain’s small businesses for far too long.
BlueWaves, as the new investment vehicle will be called, will provide equity funding to early stage businesses and start-ups with a focus on small businesses based in regions right across the UK. These small businesses – including digital and e-commerce; software and technology; creative and media, to name a few – will now be able to secure the early stage investment they need to grow.
The investment announced today is on top of a multi-million pound investment programme already underway at TSB to build new banking services for small businesses across the UK. TSB’s recently appointed Commercial Banking Director, Richard Davies, is leading TSB’s entry into the small business banking market.
Richard says: “What better way to kick start the year supporting the future of local small businesses than to invest right in the heart of the UK economy. This is a tangible example of how we want UK businesses to reach their full potential as we put our money where our mouth is.
“We’re spending millions of pounds of our own money to build new services for small businesses, and our new banking platform will provide the springboard to really take on this market in 2018.
“There’s a real moment of opportunity to create something better for small businesses in the UK – and through BlueWaves and the next generation of business banking – we are going to be leading the charge – watch this space.”
TSB’s CEO, Paul Pester, says: “There are millions of hardworking people employed by over 5.7 million small businesses right across the UK, together they make up 60 per cent of the private sector economy. Not only that, but small businesses are the lifeblood of the UK economy – creating nearly three in four of all new private sector jobs since 2011.”
“Given our track record in bringing more competition to UK retail banking, we feel we are in the best position to make use of the Capability and Innovation Fund – often referred to as the RBS remedies – to break the shackles the big banks have had on Britain’s small businesses for far too long.
“Imagine the good that money could do for Britain’s small businesses in the hands of a bank like TSB – one that has already shown its credentials in taking on the big banks.”
Notes to editors
Sabadell Capital is the Private Equity and Venture Capital arm of Sabadell; it provides expansion capital for companies across different sectors and sizes from technological start-ups, mid-sized traditional businesses to renewable energy projects. Sabadell Capital has an experienced team of more than 25 professionals focused on originating and structuring deals and on creating value in investees.
TSB was built to bring more competition to UK banking and ultimately make banking better for all UK consumers. TSB only serves local customers and local businesses, to help fuel local economies, because communities thriving across Britain is a good thing for all of us.
We have a simple, straightforward and transparent banking model and make clear on our website how we operate and make money. We offer the products and services people tell us they want, with none of the funny stuff people normally associate with traditional banks.
Our five million customers appear to notice: TSB is Britain’s most recommended high street bank and was identified as one of the top 10 big companies to work for in 2017.
TSB is starting to put all the pieces in place to take on the small business banking market. TSB’s new state-of-the-art banking platform will unlock even greater SME capability for TSB in 2018 and positions the Bank well to compete for one of the grants from the Capability and Innovation Fund recently announced by the UK Government and designed to boost competition in the business banking market. The Bank will be submitting a bid for a Pool A grant.
For further information about TSB Bank plc, please visit our website www.tsb.co.uk.