Metro Bank has secured £120m in funding from Banking Competition Remedies Limited (BCR).
BCR is the independent body established to implement the £775m RBS State Aid Alternative Remedies Package.
Metro Bank will use the funding to meet the needs of SMEs.
This finance — from the Capability and Innovation Fund Pool A grant process — will help enable Metro to transform the UK SME banking experience.
“Securing this award from BCR Ltd allows us to accelerate our plans to revolutionise banking for SMEs,” said Craig Donaldson, CEO at Metro Bank (pictured above).
“It will help us bring much-needed competition to the underserved SME hotspots in the North, while investing in our digital capabilities and creating new jobs.
“We already provide tens of thousands of businesses with market-leading service and convenience, and these funds will enable us to introduce new services and products for more SME customers across the country."
In addition, Starling Bank was awarded £100m from the fund, while ClearBank secured £60m.
The three banks will be invited to enter into a Capability and Innovation Fund agreement with BCR.
“These awards seek to increase competition in the business banking market and to improve the financial products and services available to SMEs,” said Godfrey Cromwell, chairman at BCR.
“Following the successful launch of the Incentivised Switching Scheme by BCR last year, Pool A is the first group of grants from the Capability and Innovation Fund.
“Further grants (Pools B, C and D) will be awarded later this year.”
BCR said that it received a total of 16 applications from six applicants for the Pool A process during an application window between 1st November 2018 and 31st December 2018.
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