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How Tide’s determined rise cost UK taxpayers millions

The fintech gained a wave of new customers after signing up to the Covid bounce back scheme, but now a third of the loans it made have gone bad

The first Covid lockdown proved a mixed blessing for the banking platform Tide. The government’s first stay-at-home orders, in March 2020, sparked fear throughout the City, and fintech firms such as three-year-old Tide were no exception. The pausing of an entire economy threatened to decimate demand for its services.

But opportunities started to unfold when then-chancellor Rishi Sunak revealed plans for a 100% taxpayer-backed loan scheme that would keep traders afloat. It gave burgeoning lenders a chance to not only support struggling business customers, but potentially attract new clients by distributing state-backed funds.

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Read the original article at The Guardian

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