The bank will provide business banking services to SMEs, including SME mortgages and business deposit accounts.

Redwood Bank has also launched a 35-day business savings account offering 0.45% AER variable.

The Letchworth-based bank claims to be the first business bank with a 100% cloud-based infrastructure.

Gary Wilkinson, co-founder and chief executive of Redwood Bank (pictured above, left), said: "We are delighted to be open for business so soon following the issuing of our initial banking licence.

“We aim to offer a real alternative for small- and medium sized organisations, providing them with simple transparent loans and savings accounts, great service and a promise that our money is being invested into British businesses and our local communities.

“As many traditional banks are hampered by poor lending practices from their past and their legacy systems, we are perfectly positioned to help British SMEs take advantage of property opportunities by offering a highly tailored service for clients that is built around our very experienced regional managers."

Gary will be supported by board members Jonathan Rowland, co-founder and non-executive director (pictured above, right), and the chairman David Buckley.

Redwood Bank will initially focus on the areas of Hertfordshire, Bedfordshire, Buckinghamshire and Warrington, where the bank has also opened a Warrington and North West regional office to support SME growth in the town and region.

The bank is wholly owned by Redwood Financial Partners – which is controlled by Jonathan and David Rowland – in which Warrington Borough Council also has a 33% stake.

The council's executive board has approved an investment of £30m in Redwood as part of the bank's capital funding.