Orchard Funding Group has submitted an application for a bank licence to the PRA and the FCA.
The finance company – which specialises in insurance premium finance and the professions funding market – has made the application to ensure it was no longer wholly reliant on third-party banks for its funding requirements.
Orchard also hopes the bank licence will reduce its cost of funds as well as enable it to increase its lending in its target markets.
As well as submitting the application, Orchard has also appointed Rajiv Agarwal as director of legal and compliance, along with Harsukh Soni, who will become chief financial officer upon the application being approved and subject to receiving regulatory approval.
Both are yet to join the company but are set to do so in the coming weeks.
Harsukh has over 28 years of experience in the financial services sector, including holding senior positions at Santander.
Meanwhile, Rajiv has over 40 years of experience in financial services and was previously head of compliance and MLRO at the State Bank of India in London.
Ravi Takhar, CEO at Orchard Funding Group, said he was pleased to announce the submission of its bank licence application and the appointments of Harsukh and Rajiv.
“With their combined banking, financial and regulatory expertise and our existing board members, we will have an enhanced team to manage our future business requirements.
“We look forward to providing a further update to the market during August."
Orchard Funding Group anticipates receiving the bank licence at the end of 2018, when there will then be a period of mobilisation.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Gatehouse appoints head of home finance operations
Gatehouse Bank has hired Karen Faulkner (pictured above) as its head of home finance operations...
Masthaven expands senior team across mortgage and savings divisions
Masthaven has announced that three new senior members of staff will be joining its mortgage and savings divisions...
Paula Purdy to leave Shawbrook
Shawbrook has announced that Paula Purdy will be leaving the specialist bank to pursue other opportunities...
Monese urges holidaymakers to shop around for their bank to save money abroad
Brits travelling abroad have been encouraged to save money by shopping around for bank accounts...
Tandem introduces healthy balance feature
Digital bank Tandem has announced the launch of a new healthy balance notification feature on its banking app...
The Access Bank UK joins Bacs
The Access Bank UK has been announced as the latest brand to join Bacs Payment Schemes Limited (Bacs)...
Nearly 75,000 SMEs supported through BBB programmes
The British Business Bank (BBB) has reported that the total stock of finance provided through its programmes in the last financial year rose by 33% to £12.25bn...
Close Brothers’ banking division reports 6.6% loan book growth
Close Brothers Group PLC has revealed that its banking division has seen a 6.6% growth in its loan book in the 11 months to 30th June 2018...
Leeds introduces two-year fixed rate BTL product
Leeds Building Society has launched a two-year fixed rate buy-to-let (BTL) mortgage product as part of a wider refresh of its 70% LTV BTL range...
Just 20% of Brits would opt for a challenger bank
Only 20% of UK residents would opt for a challenger bank if they were opening a new account today, according to research from Equifax...
Santander to form digital investment banking team
Banco Santander has announced that a new digital investment banking team will be formed within Santander Corporate & Investment Banking...