Responsible Finance, which represents the UK’s £287m community development finance institution sector, has appointed Chris Sood-Nicholls of Lloyds Banking Group to our board as a non-executive director.
Sood-Nicholls is Managing Director, Regional Development at Lloyds Banking Group and set up the bank’s regional development programme. A long-term advocate for impact lending and financial inclusion, he also serves on the boards of Energy Capital, the regional energy partnership for the West Midlands, and The Blackpool Pride of Place Partnership.
His appointment to the Responsible Finance board follows March 2024’s announcement of Lloyds Bank’s £43m investment into three Community Development Finance Institutions (CDFIs) through the £62 million Community Investment Enterprise Fund (CIEF), which aims to invest in around 800 small businesses, supporting around 10,500 jobs.
Responsible Finance’s CDFI members support viable businesses, social enterprises, and people who can afford to repay a small sum loan, but may not be able to access the finance they need from banks and other sources. In 2023, they lent £287m to customers who may otherwise have been excluded from affordable finance, a 14% increase on 2022, and the highest total lending in their 30 year history, creating and safeguarding over 12,000 jobs.
Chris Sood-Nicholls, Managing Director, Regional Development at Lloyds Banking Group, said:
“Over the past few years, I’ve spent time with many CDFIs and am impressed by their approach, ambition and potential. There is a clear opportunity to create a material step change in the scale of the CDFI sector in the UK, which will boost access to affordable finance for micro and small businesses, including those in deprived regions. This will support inclusive and sustainable growth and regional development.
“I am looking forward to working with the Responsible Finance board to create new pools of liquidity for the CDFI sector; act as a critical friend when considering the needs of investors; harness the distribution capability of our own institutional banking franchise; and draw on my relationships with regional leaders and the public sector, where there is growing interest in the work of CDFIs. Responsible Finance and its member CDFIs do amazing work and it is an exciting moment for the sector and the communities it serves.”
Peter Udale, chair of Responsible Finance, said:
“We are delighted Chris has agreed to join the board of Responsible Finance. Not only does he bring considerable expertise and enthusiasm for the CDFI sector, but his appointment strengthens the growing partnerships between CDFIs and banks. We look forward to working with Chris.”
What next?
- More about the £62m Community Investment Enterprise Fund (CIEF), launched to help small businesses across England and Wales access finance to support local jobs and economic activity, in which Lloyds Bank is the lead investor.
- Journalists and media: numerous case studies of thriving businesses supported by responsible finance providers (CDFIs) are available. For case studies or comment requests contact Jamie Veitch.