Paragon Bank is focusing on expanding its reach and offering an enhanced proposition following its reorganisation last month .
In an exclusive interview with Specialist Banking, Nigel Terrington, chief executive of Paragon Bank (pictured above), explained the impact the strategic reorganisation will have on the bank and its current and potential customers.
Last month, the Paragon Group of Companies announced that it would be running all its lending and operating activities through Paragon Bank.
Why reorganise Paragon?
â€œParagon Bank has been a huge success since launching three years ago and has been the main growth engine for the group, providing access to funding, developing six new business lines and becoming profitable in its own right much earlier than the banks we compete with,' said Nigel.
He explained that the reorganisation gave it the opportunity to simplify its governance structure and brand proposition to enhance operational efficiency and optimise the speed of decision making.
â€œThe reaction so far has been overwhelmingly positive.
â€œThe reorganisation will increase our operational and financial efficiency and will enhance engagement and delivery to our customers and business partners.
â€œIt will also increase the group's funding capacity to meet its ambitious growth plans.'
What are Paragon's growth plans?
â€œSince launching the bank three years ago, we've developed six new business lines and now operate across a diverse portfolio, with specialist expertise in each.
â€œOur focus now is on expanding our reach in those areas and offering an enhanced proposition to our customers and intermediaries.'
Nigel said that changing the group's name to Paragon Banking Group PLC reflected the change in focus towards it becoming a fully integrated banking business and has been followed by a series of rebranding exercises to align the group's subsidiaries.
Nigel added that over the past 20 years, Paragon had grown both organically and through carefully considered acquisitions.
When asked whether the bank was looking at further acquisitions, he said: â€œNow we've simplified our proposition â€“ bringing our lending brands under one, clear Paragon banner â€“ our focus is on enhancing our specialist capability across our broad portfolio and growing our business in its new structure.
â€œWe also purchase portfolios through our subsidiary Idem Capital and we continue to see a strong pipeline of opportunities.'
How will the reorganisation help Paragon compete in the specialist banking sector?
In addition to Paragon Bank becoming profitable in its own right, the chief executive explained how the reorganisation could further help the bank.
â€œThe reorganisation means lower funding costs for the group, enabling us to pass these savings on to our customers, by offering more competitive products across all our lending areas.
â€œThe structural changes mean we will be able to make decisions more quickly and more efficiently.
â€œAnd simplification of the brand provides better opportunities to deliver in a clearer, more simple approach for our customers and intermediaries.'
With regards to where Paragon sees itself in five years' time, Nigel added: â€œLooking at what we have achieved over the past three years and repositioning the group to nurture the continued growth opportunity, we have built a strong platform for even more success.
â€œParagon's strategic reorganisation will increase operational and financial efficiency, enhancing engagement and delivery to customers and business partners and will increase the group's capacity to meet our ambitious growth plans.'
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