Bank North, previously operating as B-North, is looking to raise £1 million in growth capital on GrowthFunders.
UK-based Bank North was granted a banking license (Authorised with Restrictions or ‘AWR’) by the UK’s Prudential Regulation Authority (PRA) this past August. Around the same time, the Fintech reported that it closed on a Series A funding round backed by LHV Group, LHV Asset Management, Skipton Building Society, Channel 4 Ventures, Greater Manchester Combined Authority, Dean Benson, and Steve Davis.
Bank North reports having raised over £30 million in capital to date, with the Series A round collecting £21.4 million. Bank North has previously raised funding on GrowthFunders when operating as B-North.
Bank North is a unique spin on the future of banking as it it combines a cloud native tech stack with “regional Pods” as opposed to a centralized approach. Bank North describes their strategy as follows:
“Our model is unique, built on seamlessly-integrated, cloud-native banking technology, which powers a network of regional ‘Pods’, where experienced bankers will deliver committed finance to businesses up to ten times faster than the industry standard. These Pods are the backbone of a unique de-centralised model where loans are tailored to the circumstances of each business, locally decisioned and locally delivered – a much-needed antidote to the UK’s heavily centralised, standardised banking system, which has left many businesses with no local contact at their bank, and where support has been steadily degraded over the last decade.”
The challenger banks aims to tap into an SME lending sector estimated to be around £150 billion. According to its website, Bank North is currently offering Bridge/Short term finance, Buy to Let loans, Investment property loans and Trading/Commercial mortgages. Borrowers in need of credit may access up to £2 million in funds.
Savings accounts for its clients are set to commence at some point in 2022.
The securities offerings is for a 1.5% equity stake in the bank. As it stands today, over £400,000 has been raised from 44 investors (12 online). Potential exit events for Bank North may be a public offering or strategic sale. A Series B round is anticipated for 2022.
GrowthFunders is a “co-investment platform” where smaller investors may participate in securities offerings alongside professional investors.
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