HSBC is set to invest £500 million in the UK tech sector.

The investment will come as part of a wider £15 billion fund earmarked for investment in SMBs (Small to Medium Sized Businesses).

Other sectors that will see investment from the multinational bank include agriculture-focused businesses and franchise businesses, who will receive £1.2 billion and £500 million respectively.

HSBC said the fund includes specific regional and locally focussed allocations so that companies throughout the country can benefit.

SMBs account for three-fifths of the employment and around half of the turnover in the UK private sector according to statistics from the Federation for Small Businesses (FSB) quoted by HSBC.

HSBC claims that since launching its annual SME Fund in 2014, it has lent more than £90 billion to UK business.

The UK remains an attractive target for investment internationally.

London has retained its title as Europe’s most attractive city for foreign direct investment (FDI), according to new research from Ernst and Young.

There were 394 FDI-backed projects in London in 2021, a 2.9 per cent rise from 383 projects in 2020, but a fall from the capital’s peak of 538 in 2019.

“SMEs are vital to the UK economy, and our customers have told us they are ready to invest for growth,” said Peter McIntyre, head of business banking at HSBC UK. “The £15 billion fund will help businesses to expand internationally, as well as here in the UK, supporting key sectors and driving investment across the regions.

“We want to make a significant contribution to economies across the country, driving employment, local wealth, and growth by providing funding, when and where it’s needed most.”

He added: “We know our customers are innovating and adapting at pace and British businesses need their bank to be flexible, supporting future growth opportunities.”

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