UK challenger CivilisedBank tries again for banking licence
UK challenger CivilisedBank is back on the radar and has resubmitted its banking licence application to the Bank of England.
We’re back
As reported in April, the bank said it will release its banking licence (obtained in May 2017) to give more time to develop its technology platform, before subsequently reapplying for a new licence.
It was keen to stress that everyone was super cool with this. The Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA) were aware and the decision was “fully supported” by CivilisedBank’s main shareholder, Warwick Capital Partners.
Chris Jolly, non-executive chairman, CivilisedBank said it made this choice “rather than try to rush through our current IT development phase”.
In the latest development, it’s trying again and has also received further funding from Warwick Capital Partners, as well as from an unnamed blue-chip, FTSE100 pension fund.
The bank says it used this extra time to develop its technology platform further and, by resubmitting its banking licence application, is now preparing for launch in H1 2019.
For its technology, the bank originally opted for a packaged solution from local consultancy firm, Tusmor. It consists of Profile Software’s FMS.next for core banking operations, Dovetail (now Fiserv) for payments, Sphonic for risk management and AML, and Aqilla for accounting.
It is focused on the UK SME market and funded by retail savings. It will offer savings and loans, transaction banking, overdrafts, current accounts with deposits and foreign exchange.
CivilisedBank will not have any branches, but offers a “Local Banker” network to help build one-to-one relationships with SMEs, “without the high client volume per banker or the traditional costs associated with the existing high street banks”.
It is led by a team that has worked in a variety of banks, including Santander, Handelsbanken, RBS, HSBC, Societe Generale, Barclays, Lloyds and Bank of Scotland.
Here’s a comprehensive list of the known UK challengers to date and the technology they are using.
