Recognise Bank has completed a £14m capital raise, including fresh investment from one of its existing shareholders.
The capital raise means Recognise Bank has met the capital requirements set by the Prudential Regulation Authority (PRA), clearing the way for the removal of deposit-taking restrictions.
Once the PRA removes these restrictions, Recognise Bank will become fully authorised and plans to launch Financial Services Compensation Scheme (FSCS) protected savings products to both personal and business customers.
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Recognise Bank plans to offer savings accounts to personal customers in the coming weeks, and then business customers later this year, aiming to support more than 50,000 business and personal savers over the next five years.
Jason Oakley, chief executive of Recognise, said: “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.
“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.
“In creating Recognise Bank, we have focussed 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.”