Why it is important: When we support a small business finance product or help an alternative provider, smaller businesses benefit from better choices and better terms that increased competition can deliver.
Against our second key performance indicator, the British Business Bank is measured on the value of its activity that is channelled through finance providers other than the ‘Big Four’ banks – Barclays, Lloyds Banking Group, HSBC and RBS.
Our objective is to increase the choice of finance for smaller UK businesses – both in terms of supplier and finance type. Our aim is to ensure that more than 75% of our stock is delivered through providers outside the Big Four banks.
Importance of building partnerships
In 2016/17 we took on 12 new partnerships across the business – five in Venture Capital, one in ENABLE Funding, one in the Investment Programme and five through the NPIF. One of the main ways of increasing diversity is to support new entrants and increase the capacity of existing lenders across the scope of the finance markets.
- We continued to build our partnerships with challenger banks, adding OakNorth as a new partner under our Help to Grow programme.
- We also supported more debt funds, asset finance providers and fintech players through the Investment Programme (IP), as well as ENABLE Funding.
- We launched four new early stage VC funds through our ECF programme and helped close one other VC fund through the VC Catalyst.