"This is a magic moment for Recognise Bank and the culmination of a three-year journey to build a new bank and provide much-needed support to the UK’s SMEs"
The announcement follows a successful £14million investment round last month, bringing total investment to £54million.
The new SME bank opened its doors and started offering unregulated commercial loans at the end of 2020, but the removal of deposit restrictions means it can now provide a much wider range of services. FSCS-protected savings products for personal savers are due to be launched this week, while business savings accounts will follow later in the year.
The flow of funds into the bank from its savings products will also enable Recognise Bank to increase lending to the UK’s small and medium sized businesses via a national network of regional hubs.
Recognise Bank offers a range of unregulated funding options for SMEs, including commercial mortgages, bridging loans, and working capital Loans, in addition to specialist professional practice loans for firms such as architects and solicitors, as well as the medical and healthcare sectors. Buy-to-let loans for professional property investors are due to launch later this year.
The bank has already received £750 million in lending enquiries since it opened its doors in November 2020 and aims to provide £1.3 billion in lending to more than 5,000 SME borrowers over the next five years. It also plans to support more than 50,000 business and personal savers over the next five years.
Jason Oakley, CEO of Recognise Bank, said: “This is a magic moment for Recognise Bank and the culmination of a three-year journey to build a new bank and provide much-needed support to the UK’s SMEs who have been increasingly let down by the mainstream banks.
“We have stuck to our plans and ambitions to be a fully regulated bank, and while other new entrants have either stumbled or fallen, Recognise Bank is already working with SMEs in the regions, lending and supporting their business ambitions.
“While the lifting of deposit restrictions is a successful milestone for Recognise Bank, it also marks the start of our next exciting phase. We can now offer savings accounts for personal savers, as well as business customers whose savings needs have been completely ignored by the big banks for years."
