Since launching earlier this year in Northern Ireland, Simply – formerly known as Simply Asset Finance – has already expanded with four new hires in May 2019 alone. Christopher Marchant speaks to Mike Randall, chief executive officer, and Gary Coburn, head of sales, about the company’s plans for SME lending in the region.
Mike Randall had experience of the Northern Ireland market in his previous role as chief executive officer at Close Brothers Asset Finance.
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Of the decision to open a dedicated Belfast office, Randall says: “Simply has a dedicated SME lending model with which there was a desire to roll out across the entire UK. Gary showed an interest, and it was too good an opportunity to miss to implement the vision in Northern Ireland. Simply is aware this is a great market full of great businesses.”
Gary Coburn has 20 years’ industry experience, and joined Simply after nine years at Close Brothers Asset Finance, where he was responsible for the Northern Ireland asset finance sales team and worked alongside Randall.
With his decades of regional experience, Coburn offers a wider assessment, noting: “My view is that the Northern Irish market has always been underserved. Ever since the financial crisis of 2007-08 a lot of lenders withdrew facilities from Northern Ireland, and none of the lenders have really come back or committed to the area since.
“Instead there is a scenario where lenders will still provide facilities in Northern Ireland, but they would do it on a ‘parachute’ basis in that they will manage it from England. They will not actually have a presence here.”
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By GlobalDataWith the consideration of the SME market in Northern Ireland being historically underserved, Coburn has set a target of £30m (€33.8m) in new business for the region by the conclusion of 2019. With additional personnel hires, Simply expects to achieve full coverage of the region by the end of the year.
Randall says: “Simply is aiming high. Gary has taken on a number of people in the team so far, and we would love to be dominant in the marketplace in Northern Ireland.”
For over two decades, Northern Ireland has enjoyed the benefits of an open border and frictionless trade with its counterpart, the Republic of Ireland. However, this border has become the subject of intense debate during the UK’s negotiations to leave the EU, with much discussion of ‘backstops’ and the potential return of border checkpoints.
As to whether the ongoing issue of any potential trade disruption with Ireland affected Simply’s plans, Coburn says: “It is a risk, and like every other business here we have to assess that risk. Historically, Northern Ireland has had its own issues and its own problems. There is a need to adapt to those problems; regardless of whatever happens with the outcome of the backstop or Brexit, we still have to conduct business with whatever comes our way.”
While London receives unbalanced attention as the economic centre of England, the same may not be said of Belfast and Northern Ireland. According to Coburn: “While Belfast does have the significant portion of the population, Northern Ireland is as much a rural economy as well. There are also great industries in the country west of the River Bann; for example, County Tyrone produces a massive amount of the world’s quarry machinery.”
Northern Ireland seems set to be an important part of Simply’s operations, yet the lender has targeted expansion across the UK since its launch in 2017. According to Randall: “We are looking to grow our loan book in those territories, and we are looking to attract more brilliant people who understand the difference and disruption that Simply is intending.
“The marketplace in asset finance is underserved. It is living in the past, it hasn’t moved on with the times, and when you look at the customer journey in lots of different industries in today’s environment, it is a matter of a few clicks on a mouse or taps on a phone.”
Simply is looking at the road ahead as it establishes its brand across the UK. With the majority of businesses in Northern Ireland having fewer than 10 employees, this may well be an SME market eager to reward the attention.
