The latest funding comes from the bank’s largest investor and will be “used to increase loan book and develop new products for SMEs.”
Digital SME lender and savings provider Recognise Bank has conditionally “raised a further £25 million in investment from its group’s largest shareholder.” The fresh investment will be used “to support Recognise’s commercial lending and to fund the continued development of new products and technology for SMEs.”
Launching in November 2020 and getting its full license less than a year later in September 2021, Recognise has already “supported thousands of small businesses with over £112 million in commercial lending and more than £117 million in business savings.”
The new investment means Recognise has “raised over £95 million so far on its mission to revolutionise small business banking in the UK.”
Jean Murphy, CEO of Recognise Bank, said:
“That is the big story here; a fintech enabled bank is shaking up the marketplace and offering SMEs an alternative to big bank dominated business lending. Recognise has shown that a bank embracing cutting-edge technology and a more personal approach can attract small firms in their thousands looking for a better deal.”
Murphy added:
“This latest funding from our largest investor shows how compelling the Recognise story is; a digital SME bank with a track record of successfully lending millions to growing businesses, and a savings proposition that has also attracted millions of pounds from thousands of SMEs by offering competitive rates.”
Because of the economic challenges small businesses currently face, there “has never been a greater need for a bank that supports SMEs.”
Jean Murphy, Recognise Bank CEO, remarked:
“Because of the economic challenges small businesses currently face, there has never been a greater need for a bank that supports SMEs. This investment shows that we have a like-minded investor who is just as passionate about helping UK entrepreneurs, and who believes Recognise is the right bank to provide that support.”
The investment announced “comes from existing shareholder, PV27, a group investment company of Parasol International led by the family office of digital pioneer and real estate entrepreneur Ruth Monicka Parasol.”
It shows continued support for Recognise Bank and its strategy “to become a full-service digital SME bank.”
Ms Parasol, a Board member of Recognise Bank, said:
“As an entrepreneur and a successful businesswoman I know how important good financial support from a business bank is, as well as how rare it is to find. The UK SME banking sector is ripe for change because it is dominated by incumbent banks saddled with ageing technology and an outdated approach to customer service and innovation. Recognise Bank’s impressive blend of expertise, insight and digital innovation puts it in a very strong position to grow over the coming years and I am delighted to be part of that journey.”
Philip Jenks, Chairman of Recognise Bank, said:
“This new investment shows how much Recognise Bank has achieved in a short period of time and sets the Bank up for a bright and successful future. We have quietly gone about the business of creating a new digital bank for SMEs and will continue to focus all our energy on growing Recognise, with the backing of our largest shareholder, one of the best management teams in the business and an energised team of colleagues.”
Recognise Bank offers “a range of unregulated business loans, from Commercial Mortgages and Bridging Loans to Professional Buy-to-Let Loans, as well as FSCS protected savings accounts for both personal and business customers.”
