As traditional banks tread cautiously, alternative and specialist lenders are picking up slack. Funding Circle, for example, has facilitated over £15 billion in cumulative loans to SMEs.
These platforms offer speed, more flexible underwriting, and often less reliance on conventional collateral. But they also face higher capital costs and risk.
In 2024, challenger and specialist banks captured ~60% of gross SME lending, the highest share on record. The blending of bank and non-bank models means some competition, some collaboration.
At Spark Finance, the view is that hybrid models (bank + fintech underwriting) may be the future, combining stability with agility. In coming weeks, we’ll profile how non-bank lenders perform across risk, default, and regional penetration.
As a founder of multiple businesses, Jamie believes that mindset, discipline and ambition are key drivers for success, both for his businesses and for his clients.
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