PCF Bank has announced that it has received notification from the PRA and FCA that its regulatory restrictions have been lifted and it has become a fully operational bank.
The regulators have lifted the restrictions of PCF Bank's mobilisation period and it can now commence deposit-taking activities.
Formerly known as Private & Commercial Finance Group, it will now adopt the trading style of PCF Bank and is set to reveal a range of deposit products.
This news concludes a three-year project to transform the finance house into an authorised bank.
In that period, it has seen new business originations in financial year 2017 Q3 rise 20% on the corresponding quarter last year, while the quality of its loan book has also improved with the introduction of prime business trials.
â€œThis is the culmination of three years of hard work for everyone within the group,' said Scott Maybury, CEO of PCF Bank (pictured above).
â€œThe potential upside is considerable, as we currently have a relatively small market share and will now be able to access cheaper funding and lend into more prime segments of the market.
â€œOur organic growth proves that the model works, and the launch of PCF Bank will allow us to accelerate that growth over the next three to five years.'
The launch of retail deposit-taking operations will coincide with a number of new business initiatives for PCF which will see it expand its addressable lending market and provide a significant increase in scale as it targets a portfolio of ?£350m in three years and ?£750m in five.
â€œThe consumer market for used vehicles and the SME market for vehicles, plant and equipment remain robust and our credit criteria remain appropriately judged for the uncertainties of the current political and economic environment,' added Scott.
â€œPCF Bank's access to retail deposits will allow us to provide our broker network with an even wider and more competitive range of rates, and along with our new business initiatives, will ensure that when those deposits come in we are able to deploy that capital quickly and efficiently.'
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