Attending the UKEF Trade and Investment Forum last week left me both inspired and reflective. I was inspired by UK Export Finance’s bold commitment to fuelling UK exports and reflective on the role the UK's financial institutions play—or should play—in this vital mission.
UKEF’s message was clear: they are more than just a safety net; they are a catalyst. With £8.8 billion in financial support provided last year (with £1.3 billion for Africa), they’re not just backing the big players—they’re opening doors for SMEs, supporting projects from hospital construction in Angola to renewable energy infrastructure here at home. UKEF's focus on clean energy shows they’re thinking not just about today’s exports but tomorrow’s sustainable economy.
But here’s the question that stuck with me after the forum: Are the UK’s biggest banks doing enough to support our SMEs in seizing these global opportunities?
Lloyds Banking Group, Barclays, HSBC, and NatWest Group are financial giants with deep pockets, yet their overseas footprints are often limited compared to the global ambitions of UK SMEs. While UKEF is stepping up, can the same be said for the banks? Are they truly equipping SMEs with the tools, capital, and confidence needed to compete on the world stage?
Yes, business lending grew by 15% at the start of 2024 (compared to Q1 2023), but is that growth reaching the SMEs eager to expand internationally—or just circulating within familiar, domestic markets? Partnerships between UKEF and major banks exist, but they often feel like add-ons rather than integral strategies for export growth.
Imagine if our banks didn’t just react to SME needs but anticipated them. What if export and trade financing wasn’t seen as a niche service but a cornerstone of their SME support strategy? The potential economic ripple effect would be enormous—more exports, jobs, innovation, and a stronger, more outward-facing, and resilient UK economy.
The forum’s underlying message was one of partnership. UKEF can’t do it alone, SMEs can’t do it alone, and frankly, neither can the banks. But together, we could unlock a wave of British exports the world is hungry for.
Let’s not settle for incremental change. It’s time to challenge the status quo and ask more from our financial institutions. The world wants to buy British. The question is: Are we making it easy enough for them to do so?
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