The new bank, which launches today, will focus on providing straightforward and competitive savings and loans for UK consumers.
Benefitting from the Group’s strong heritage as a specialist mortgage and consumer finance lender, Paragon Bank will bring choice and competition to UK consumers.
Paragon Bank is based in Solihull and will employ market leading technology to deliver lending products through established intermediary channels and via the growing use of the internet for its savings products.
Paragon Bank will operate in specialist lending markets. Its initial product range will be car finance loans available via brokers and car dealers.
In late Spring Paragon Bank will also deliver a choice of online, competitively-priced savings products direct to consumers, launching with easy access and fixed rate savings accounts.
Personal loans will be available through brokers later in the year.
John Heron, Managing Director of Paragon Mortgages, said:
“This is a significant strategic step for the Group. Paragon Bank provides further expansion and diversification of our funding capability which in turn will facilitate the diversification of our lending. This will see the Group returning to sectors where it has previously been a major competitor – car finance and personal loans – and will provide a spring-board for greater innovation going forward.”
