Digital SME lender Recognise Bank has raised a further £25 million in investment from its largest shareholder. The fresh investment will be used to support Recognise’s commercial lending and to fund the continued development of new products and technology for SMEs.
Launching in November 2020 and getting its full licence in September 2021, Recognise has supported thousands of small businesses with over £112 million in commercial lending and more than £117 million in business savings.
Jean Murphy, CEO of Recognise Bank, said: “That is the big story here; a fintech enabled bank is shaking up the marketplace and offering SMEs an alternative to big bank dominated business lending. Recognise has shown that a bank embracing cutting-edge technology and a more personal approach can attract small firms in their thousands looking for a better deal.
“This latest funding from our largest investor shows how compelling the Recognise story is; a digital SME bank with a track record of successfully lending millions to growing businesses, and a savings proposition that has also attracted millions of pounds from thousands of SMEs by offering competitive rates.
“Because of the economic challenges small businesses currently face, there has never been a greater need for a bank that supports SMEs. This investment shows that we have a like-minded investor who is just as passionate about helping UK entrepreneurs, and who believes Recognise is the right bank to provide that support.”
The investment comes from existing shareholder, PV27, a group investment company of Parasol International led by the family office of real estate entrepreneur Ruth Monicka Parasol.
Ruth Parasol, a Board member of Recognise Bank, commented: “As an entrepreneur and a successful businesswoman I know how important good financial support from a business bank is, as well as how rare it is to find. The UK SME banking sector is ripe for change because it is dominated by incumbent banks saddled with ageing technology and an outdated approach to customer service and innovation.
“Recognise Bank’s impressive blend of expertise, insight and digital innovation puts it in a very strong position to grow over the coming years and I am delighted to be part of that journey.”
Philip Jenks, chairman of Recognise Bank, added: “This new investment shows how much Recognise Bank has achieved in a short period of time and sets the Bank up for a bright and successful future. We have quietly gone about the business of creating a new digital bank for SMEs and will continue to focus all our energy on growing Recognise, with the backing of our largest shareholder, one of the best management teams in the business and an energised team of colleagues.”
