Excellence in Fintech: Funding Circle

Author: Matthew Wilde

Excellence in Fintech – Funding Circle

In just six short years, Funding Circle has staked a significant claim on the financial world, leading the small-business peer-to-peer lending space. The company embraces innovation and accessibility as two of its core values, automating much of the process and simplifying paperwork requirements. As the U.K.’s largest online small businesses lender and third-largest small business lender overall, Funding Circle has provided $2.5 billion in funding to organizations throughout Europe and the U.S.

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Grabbing Fintech Headlines

Funding Circle has been able to not only survive but thrive amid the controversy and doubt that swirled around the global P2P lending marketplace in 2016. In addition to being named the Best FinTech Startup at the 2016 Europas Startup Conference and Awards, the company grew by one-third in the last two quarters of the year. This is especially laudable in the wake of the Brexit, which destabilized the U.K.’s economy and created hesitation in business owners and investors alike.

Early 2017 has followed suit, with Funding Circle announcing an additional $100 million (£79 million) in equity funding in January as well as a $49 million (£40 million) investment courtesy of the state-owned British Business Bank.

The Future of Funding Circle

So what does the future hold for Funding Circle? As with most of the peer-to-peer lending sphere, the company is aiming to refine the credit scoring and vetting processes to ensure that borrowers are represented fairly and accurately. It’s also working towards solutions that protect investors and help them diversify their portfolios.

But the real story is Funding Circle’s big picture plan. In an interview with Bloomberg, Funding Circle co-founder James Meekings discussed the impact of its SMB lending activities on the job market noting that, “In total, $2.5 billion has been lent through our platform so far, 1.1 billion pounds lent last year alone. You think about the jobs that creates, it’s about 60,000 jobs in the country.” The company hopes to create an additional 50,000 in the U.K. over the course of the year through its lending.

 


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