Hard pressed SMEs will be interested to learn more about this new challenger bank, after paying monthly fees to the Big Four, finding branches closing and not getting much value in return for loyalty during the pandemic. Here’s the word;
Challenger bank, Recognise Bank, will benefit from £8.7 million in new capital following the latest successful round of fund raising announced today by the City of London Group (CoLG), the Bank’s parent company. This means CoLG has so far raised almost £65 million in investment during its mission creating a new business bank for UK SMEs.
Recognise recently achieved £100 million in lending, little more than six months after receiving its full authorisation by the PRA in September 2021. Its personal savings accounts have topped the best-buy tables, attracting £95 million in deposits so far, followed by the launch of business savings accounts in April.
The new capital will be used to support continued business lending, as well as the creation of a new team to further accelerate the Bank’s digital innovation, including the creation of new products and fresh revenue streams. A number of high calibre appointments to the team have already been made and the first development projects will be announced soon.
The latest investment comes from two of CoLG’s existing shareholders, PV27, the family office of real estate entrepreneur and digital pioneer, Ruth Parasol, and Max Barney Investment Limited (MBIL), the London based property firm. PV27 and MBIL are exercising warrants received during the last fund raise in August 2021.
Bryce Glover, CEO of Recognise Bank, said: “Recognise Bank has already made its mark in the business banking sector by hitting the challenging lending target we set, proving there is demand amongst the UK’s SMEs for our mix of relationship banking, supported by cutting edge technology.
“To receive this fresh investment from two of our keystone shareholders shows their continued support for Recognise Bank and commitment to our strategy and vision. Investing in our digital capabilities will help us build a world-class business bank, for today and the future.”
Phil Jenks, Chairman of the City of London Group, said: “We have consistently delivered on time and in line with our strategy to create a new bank for Britain’s growing businesses, firms that are the lifeblood of our economy, but are consistently ignored and let down by the mainstream banks.
“The latest investment from Ruth Parasol and Max Barney is an important moment for Recognise, because it means the Bank can build on a foundation of £100 million in lending and £95 million in savings deposits to push its digital capability even further and create a Bank that perfectly blends speed, service and innovation.”
Recognise Bank provides SMEs with digitally enabled relationship-led banking, offering a range of unregulated lending options via a network of relationship managers across the UK. The Bank has secured £100 million in lending from a pipeline of £1 billion worth of applications, as well as attracting £95 million in deposits through a range of Personal Savings accounts and Business Savings accounts.