Newly-introduced SME bank, Recognise Bank, reveals that it has acquired £14 million in funding, which includes a recent investment from one of its existing shareholders.
The capital injection means that Recognise Bank has now satisfied the financial requirements established by the PRA (Prudential Regulation Authority), which should help clear the way for the removal of deposit-taking limitations.
After the PRA effectively removes these restrictions, Recognise Bank will be able to serve as a fully authorized entity. The bank plans to introduce FSCS-protected savings products for personal and business clients. This should allow Recognise Bank to expand its business lending operations, which are focused on the small business sector.
Jason Oakley, CEO at Recognise Bank, stated:
“This is a major milestone in our journey to create Recognise Bank and change the complexion of SME banking in the UK. We set out on a mission to help the UK’s growing small and medium sized businesses, who need expert support more now than ever before. This successful capital raise is proof that we are on the right trajectory.”
The recent investment round included an extra £10 million in capital from existing shareholder, real estate investor and entrepreneur Ruth Parasol.
She remarked:
“Recognise is the right bank, with the right team, to change SME business banking in the UK. Recognise combines personal service with the cutting-edge digital banking technology to increase speed and service to its customers. As a fully authorised bank, Recognise will be able to offer a much wider range of services to business and personal customers.”
She added:
“I am delighted to further support Recognise Bank, especially Jason and his management team. Their expertise and commitment to the Recognise mission is truly outstanding and I look forward to the delivery of their plans in the years ahead.”
Recognise Bank was established in 2018 and managed to receive its Authorization with Restriction (AwR) in November of last year.
Instead of the centralized call centers that are being used by large banks, Recognise Bank is forming a network of regional or domestic hubs with qualified Relationship Managers who work closely with SMEs and various advisers.
Recognise Bank says that it has adopted the most innovative cloud-powered banking tech to offer small businesses with faster lending decisions and convenient access to funds, using the nCino Bank Operating System and the Mambu software-as-a-service (SaaS) Cloud banking platform.
Oakley noted:
“Not only have I worked in business banking and commercial lending for many years, I have also run my own business, as have a number of the team at Recognise. Therefore, we are uniquely placed to understand the challenges SMEs face and the frustrations they have dealing with many of the mainstream banks.”
Oakley also mentioned:
“In creating Recognise Bank, we have focused on the pain points smaller businesses have with current banks, such as the lack of personal contact and speed of lending decisions, to build a bank that addresses those issues. That means Relationship Managers who are able to provide real support and guidance to businesses, and back-office technology that ensures companies get the funds they need as quickly as possible.”
Recognise Bank provides various unregulated funding options for small businesses, such as Commercial Mortgages, Bridging Loans, and Working Capital Loans, along with specialist Professional Practice Loans for companies (like architects and solicitors0.
Recognise Bank confirmed that it also aims to provide savings accounts to personal clients in the next few weeks, and then business clients as well. The bank also mentioned that it is planning to support over 50,000 business and personal savers.
Regognise Bank claims it received £750 million in lending inquiries since it launched in November 2020. The bank intends to offer £1.3 billion in lending to 5,000+ SME borrowers in the coming years.
Recognise Bank is being led by Jason Oakley, Chief Exec, who was previously MD of Commercial Banking at Metro Bank and has an established career focused on banking and commercial lending.
Oakley is joined by Bryce Glover, Deputy CEO, who has prior experience working at the Commercial Division of Nationwide Building Society, and also in various senior banking roles with Alliance & Leicester / Santander.
The company board is reportedly being led by Phil Jenks, who had been serving as Chair of Charter Court Group. Jenks has extensive experience in establishing a successful financial service firm from scratch. The City of London Group (COLG), is the parent company of the bank.