The Paragon Group of Companies has announced a strategic reorganisation, which it hopes will accelerate its transformation into a diversified specialist banking institution.
As part of the reorganisation, the group intends to change its name to Paragon Banking Group PLC.
The parent company of Paragon Mortgages and Mortgage Trust will now run all its lending and operating activities – together with the majority of its loan portfolio – through Paragon Bank.
The move follows PRA and FCA approval.
Paragon said that these actions reflected the group's strategy to source the majority of its funding from the retail deposit market going forward.
The group said it was becoming a fully integrated banking business and the changes would enable the group to begin simplifying its branding over the coming weeks to make it easier for customers and intermediaries to recognise Paragon's full product range.
This would include realigning Paragon's mortgage products under the refreshed brand.
John Heron (pictured above) will continue to lead the group's mortgage business as managing director for mortgages and as an executive director at Paragon.
“This is an important milestone and a positive development for our customers and intermediaries.
“By bringing more of our business into the banking framework, we can use our capital more efficiently and simplify our operating structure enabling us to offer better products, more competitive pricing and better service going forward.”
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