Elliott Advisors has agreed to invest up to £150m in recently licensed bank Chetwood Financial.
The Wrexham-based financial provider secured the banking licence from the PRA and the FCA, adding to existing authorisation for its lending business secured early last year.
Chetwood plans to launch its first consumer finance product in Q1 2018 – an innovative unsecured loan – and will continue to develop and test its first savings products during its mobilisation period.
The unsecured loan product LiveLend will look to support those who are not best served by current offerings and Chetwood hopes that its low operating costs will allow it to pass on savings to its customers.
The financial provider will operate on cloud-based technology platform Yobota, which can house a range of standalone products, from lending to savings.
Chetwood and Yobota were founded by ex-HSBC banker Andy Mielczarek (pictured above) and technology strategist Mark Jenkinson in 2016.
Chetwood has since recruited a board of directors featuring a number of experienced UK financial professionals, including LV= chairman Alan Cook.
“Our starting point is a desire to do a better job for customers who aren't being best served by existing financial providers,” said Andy.
“We are not yet another 'challenger bank' and we don't plan to offer full-service banking to everyone.
“Instead, our focus is on creating standalone products that offer a better deal and experience for specific groups of customers, who we believe we can make better off.
“The support from Elliott and receipt of regulatory permissions is a huge vote of confidence in our new model for financial services and our future plans.”
Amit Sharma, portfolio manager at Elliott, added: “In an environment where there are numerous management teams seeking investment for bank start-ups, Chetwood stands out given the strength and experience of the management team, a business plan focused on asset accumulation and its credible market proposition.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Aldermore appoints new head of intermediary distribution
Aldermore has appointed Nick Parker (pictured above) as its new head of intermediary distribution within its retail mortgage business...
Ipswich Building Society to develop enhanced savings proposition over next two years
Ipswich Building Society has confirmed that it will develop an enhanced savings proposition over the next two years, with a focus on both digital and face-to-face services...
BTR: Tenant poacher or happy bedfellow?
The sand has been shifting so much under the feet of private landlords that many may believe they are becoming an endangered species...
Paragon bolsters asset finance team
Paragon has appointed Jan Greenhalgh as head of new business within its asset finance division...
Gatehouse Bank appoints new director
Gatehouse Bank has appointed Roger Evans (pictured above) as its new director of home finance distribution...
Rob Lankey to join Shawbrook as director of commercial investment
Shawbrook has announced that Rob Lankey (pictured above) will join as its new director of commercial investment at the end of February...
Secure Trust Bank ceases new mortgage lending
Secure Trust Bank has revealed that it has ceased new mortgage lending...
Starling Bank announces three new partnerships
Starling Bank has expanded its banking services offering with the introduction of three new partners...
Mortgage advisers forecast almost no growth in business levels in Q1
Mortgage advisers expect business growth of only 0.1% in in Q1 2019, according to recent research...
Fidor partners with Finn AI to launch AI-powered chatbot for banks
Digital banking group Fidor has partnered with banking technology provider Finn AI to launch a new AI-powered chatbot for banks...
Tesco Bank cuts mortgage rates
Tesco Bank has reduced rates across its residential mortgage range...