London greenlights another challenger bank
(22 May 2017 – United Kingdom) Bank of England’s Prudential Regulation Authority (PRA) has awarded a new challenger bank servicing small businesses a banking license.
CivilisedBank has been given the green light from the industry watchdog, with the new lender expected to launch its digital-only offering next year. It will employ “local bankers” to forge relationships with businesses across the country.
Led by former banker Chris Jolly, the digital lender will serve established companies – rather than startups – with a turnover of up to £25 million, by focusing on relationship-banking.
“We’re very clearly of the view that the sector is underserved by the existing banks, particularly in the way they handle relations,” said Jolly.
“With modern technology, you don’t need a branch network,” he added.
“A local banker can have a laptop, a phone, and all the systems that go with that.”
The bank plans on having up to 80 bankers over the next five years in most of the major towns across the UK.
Civilised will partner with a traditional high street bank to provide businesses with facilities to make cash deposits and do basic branch banking activity.