8.6 C
New York
Sunday, January 16, 2022
Home Challanger banks The Great British Bounceback: research from Enterprise Nation and Starling Bank

The Great British Bounceback: research from Enterprise Nation and Starling Bank

Two-thirds of SME’s are confident of increased turnover in 2022, Enterprise Nation and Starling Bank report in new research.

Read also: Revolut announced the acquisition of the ePOS Nobly POS system

This research from Enterprise Nation and Starling Bank has brought up that while 40% of businesses are yet to bounce back, more (43%) say they are recovering and just 5% are concerned they won’t reach pre-pandemic performance.

About 810,000 new enterprises were founded in the UK between March 2020 and March 2021.

This makes it the biggest year for creation on record, according to data from Companies House.

However, the rate of business failure was high during the period, with 437,790 businesses having to shut their doors. Still, in Q1 2021 alone, 211,368 new businesses were registered with Companies House.

Majority (65%) of those surveyed predict that 2022 will be a year of strong performance.

Even with continuing labour shortages, supply chain issues and rising material costs creating a challenging business environment, only 3% of small businesses report that they aren’t resilient.

In fact, two thirds (65%) are optimistic for 2022, with the same amount confident they’ll increase their turnover.

Starling shows confidence in its own field as well. Just recently, Starling Bank has reportedly decided to buy another mortgage book for an estimated price of £1 billion.

Anne Boden, Starling CEO, has written in a foreword in Banking On It, Starling that she no longer sees fellow startups like Monzo as her chief rivals, but the UK’s largest incumbent banks.

“The extraordinary experiences of the year 2020 made it clearer than ever that our competitors are now Lloyds, Barclays et al,” she wrote.

Barclays, which she said has around a 15% share of the market, is “now firmly in our sights”.

Avatar
Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Revolut is launching as a bank in 10 more European countries

This means the London-based digital bank is now offering deposit protection of up to € 100,000 to local customers in the particular markets.

Starling has stopped advertising on Facebook and Instagram

The CEO Anne Boden says the company won’t advertise on Facebook or Instagram ‘alongside scammers who are going after the savings of our customers.

Commodities trading now enabled by Revolut for Singapore users

The Monetary Authority of Singapore (MAS) has given permission to Revolut to allow customers to trade gold and silver on its platform.

Tencent takes stake in Monzo Bank

The tech giant from China Tencent has taken a minor stake in Monzo Bank after joining Monzo's latest funding round.