By Aisling Finn on Tuesday 13 October 2020
Of the lenders that had to make redundancies because of the pandemic, 60 per cent used a job retention scheme to try to keep their staff.
Alternative lenders across the UK and Europe used government-backed job retention schemes, according to exclusive data from AltFi’s Alternative Lending State of the Market Report 2020.
Over half (52 per cent) of lenders surveyed made use of the job-saving programmes amidst the coronavirus pandemic, while the remaining 48 per cent did not.
The data, which consists of survey results from the top 44 alternative lenders across the UK and Europe, also showed that of the lenders that used job retention schemes, the vast majority (70 per cent) operated solely in the UK.
Outside of the UK’s furlough scheme, other governments across the continent set up comparable programmes such as Kurzarbeit programme in Germany.
Across the board, only just over a third of lenders (34 per cent) have had to make redundancies because of the Covid-19 pandemic or otherwise, while the remaining 66 per cent have managed to keep all staff on board.
Of the two thirds who retained all staff throughout the pandemic, the majority (52 per cent) did not participate in government job retention schemes, while the remaining 48 per cent did.
And, of the remaining lenders that reduced their headcounts over the last six months, 60 per cent used a government job retention scheme, while 40 per cent did not.
Earlier this week, AltFi exclusively revealed that alternative lenders on the continent were far more bullish about hiring new staff in the last six months than their UK counterparts.
Nearly three quarters (73 per cent) of European lenders increased their headcounts, compared to just 58 per cent of UK-based lenders hiring new talent.
As well as participating in job retention schemes, alternative lenders across Europe were also sat on the other side of the table, helping to facilitate government-back lending schemes.
Nearly half (46 per cent) of alternative lenders surveyed helped to dish out government funds to coronavirus-hit SMEs, whether it be the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme here in the UK or the Italian Government Guarantee or the French SME Support Loan Scheme (BPI).