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.
“This is the culmination of three years of hard work for everyone within the group,” said Scott Maybury, CEO of PCF Bank (pictured above).
“The 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.
“Our 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.
“The 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.
“PCF 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.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Commercial mortgage brokers positive despite Brexit concerns
Almost four-fifths of commercial mortgage brokers (78%) said they felt confident about the lending environment in 2018, up from 72% in 2017, according to new research.
Metro Bank names new commercial banking director
Metro Bank has appointed Jamie Sim (pictured above) as a commercial banking director within the commercial real estate team.
The launch of Open Banking
The launch of Open Banking at the weekend is clearly an important milestone in opening up the UK retail banking industry to much-needed competition.
Aldermore appoints specialist vehicle valuations head
Tim Bearder has joined Aldermore as its new head of specialist vehicle valuations.
Millennial banking app secures FCA approval
Emma Technologies Ltd has received approval from the FCA.
Open Banking goes live: industry reacts
The launch of the Open Banking scheme last week has presented many opportunities, but as one bank has stated, data sharing alone will not revolutionise the market.
EIB and Bankia to allocate €800m to SMEs and mid-cap projects
The European Investment Bank (EIB) has agreed a €400m loan with Bankia which will provide finance for Spanish SMEs and mid-cap (up to 3,000 employees) projects.
Open season on Open Banking
Reading the national media on Open Banking, I get the sense of an impending cock-up of England World Cup football proportions.
Charter Court agrees to sell its interest in mortgage securitisation
Charter Court Financial Services Group PLC has agreed to sell its entire economic interest in the Charter Mortgage Funding 2017-1 PLC securitisation (CMF 2017-1) for £26.5m.
Monzo opens API to third-party companies
Monzo has announced that it has made an interim API accessible to third-party companies authorised as Account Information Service Providers (AISPs) by the FCA.