CivilisedBank has announced that it will release its banking licence to give it more time to develop its technology platform before reapplying for a new licence.
The company originally received a banking licence in May last year, but this decision will allow it more time to complete the build phase, which will deliver the technology and operations to launch an optimal customer offering.
Both the PRA and FCA are aware of the decision, which has been fully supported by CivilisedBank’s main shareholder Warwick Capital Partners, which earlier this year provided further funding to the company.
“The board, with the support of our main shareholder Warwick, has decided to reapply for a banking licence rather than try to rush through our current IT development phase,” said Chris Jolly, non-executive chairman at CivilisedBank (pictured above).
“For us, it is essential that we can deliver an optimal customer offering, so we prefer to delay this stage of our development and have more time to get it right.”
Once launched, CivilisedBank aims to provide banking services to UK businesses through a local banker service, which will work with local communities and offer one-on-one relationships with SMEs.
Ian Burgess, co-chief investment officer and founding partner at Warwick Capital Partners, added: “We are fully supportive of the management team's decision to extend the IT build phase with the subsequent impact on its banking licence.
“With the latest technology platform, CivilisedBank will stand out as a specialist bank offering a peerless banking service to the SME market designed to enable relationship banking and taking speedy credit decisions.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Redefining banking: AI
This is an exciting time for financial services as a new era of interrelated technologies, including artificial intelligence (AI), robotics, blockchain, machine learning, cloud computing and data science, are causing widespread technological and digital disruption in the industry...
Apple introduces Apple Card
Apple has announced the creation of its first credit card 'Apple Card', which will be made available in the US this summer...
FCA proposes changes to help mortgage prisoners
The FCA has proposed changes to how lenders assess the affordability of a loan...
Hanley Economic BS strengthens shared ownership range
Hanley Economic Building Society has bolstered its shared ownership product range through the addition of a no-fee, shared ownership variable discount mortgage for term with a headline rate of 2.89%...
Al Rayan Bank confirms appointment of new CCO
Al Rayan Bank has appointed Maisam Fazal (pictured above) as chief commercial officer (CCO)...
AI Rayan provides £228 million of property finance to expats
Al Rayan Bank has announced that it has financed £228m in residential property finance to UK nationals living and working overseas...
Vanquis Bank names new MD
Provident Financial PLC has announced the appointment of Neil Chandler (pictured above) as managing director at Vanquis Bank...
Wyelands Bank hires two new regional directors
Wyelands Bank has made two additions to its working capital solutions team...
Triodos Bank reports 17% growth in sustainable lending
Triodos Bank has reported a 17% year-on-year growth in sustainable lending for the year ended 31st December 2018...
Tandem introduces new savings account powered by AUTOSAVINGS
Tandem has launched a new savings account which pays 0.5% interest...
Project BankNorth picks nCino to provide digital banking platform
Project BankNorth has partnered with cloud-banking fintech nCino...