"The major banks have not returned to anywhere near their pre-crisis business lending levels and the uncertainty caused by Brexit is likely to worsen the situation."
Redwood expects to receive its banking licence early in 2017 and open to customers later the same year.
AFP’s majority shareholder is Acorn Global Investments Ltd and was established in 2015 to invest in financial services and in particular the banking sector.
It will continue to be the majority shareholder of the bank and anticipates that current and new shareholders will invest £50m in the bank over the next five years.
Jonathan Rowland will, subject to regulatory approval, be the Chairman of Redwood. The senior management team will be led by Gary Wilkinson as Chief Executive, again subject to regulatory approval. Gary has over 30 years’ experience within financial services, and is the former Chief Executive of Cambridge & Counties Bank.
The bank will initially lend through a team of BDMs covering its Heartland Region of Hertfordshire, Bedfordshire and Buckinghamshire, coupled with a national network of brokers and a digital distribution channel for deposits.
Redwood believes that the uncertainty caused by Brexit and continuing legacy problems from the credit crisis will continue to restrict appetite among the mainstream banks to engage in commercial property lending and loan rejection rates will remain high.
Jonathan Rowland said: “This is an ideal time to apply for a full banking licence; the major banks have not returned to anywhere near their pre-crisis business lending levels and the uncertainty caused by Brexit is likely to worsen the situation. At the same time, SMEs have shown a strong appetite for new market entrants offering competitive rates and superior customer service. Against this backdrop, we have a compelling opportunity to build a secure, robust and profitable bank.”
Gary Wilkinson, intended Chief Executive, added: “I am excited to be working with Jonathan Rowland and Acorn Global Investments Ltd on the launch of a new business bank at a time when the need for finance among small and medium sized businesses could not be greater. I am certain that Redwood’s relationship-driven, agile and traditional approach, combined with straightforward and transparent products, will resonate among ambitious business owners seeking to grow over the coming years.”
