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.
â€œThe 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).
â€œFor 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: â€œWe are fully supportive of the management team's decision to extend the IT build phase with the subsequent impact on its banking licence.
â€œWith 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.'
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