In his latest blog, Recognise CEO Jason Oakley looks back at the past month and reflects upon what it means for the future of the bank and the SME sector. What an incredible month September was. After three and half years of hard work, Recognise Bank received its full authorisation with the removal of our deposit restrictions […]
City of London banking startup Recognise receives restricted banking licence
The board of COLG is pleased to announce that Recognise, its wholly owned subsidiary has received authorisation with restriction (AwR) (banking licence) from the PRA / FCA.
The banking licence from the PRA / FCA represents a major step in addressing the service gap for SMEs, particularly after the negative impacts of COVID 19. Recognise is well advanced in its readiness to meet mobilisation conditions that will lead to the removal of the deposit restriction. It currently expects this could be as early as the end of Q1 2021.
Phil Jenks, Chairman of Recognise said:”We know that 2020 has been overwhelmingly tough for SMEs so we are delighted that Recognise is now in a position to give the support that SMEs need to survive, grow and play their part in the recovery of the economy. Receiving AwR shows the quality of what we have delivered as a business thus far, the excellent plan we have in place, and the fantastic team we have built to do this.
“As a new entrant in the UK SME banking market with no legacy book and the latest technology installed, Recognise is strongly placed to deliver on its relationship-based model and differentiated business plan. We have the experience and expertise at our disposal and believe we can play a major role in helping the UK small business sector get back on its feet.
“Michael Goldstein, Group CEO said:”This represents a major milestone for the Group in delivering the strategy set out in early 2018. UK entrepreneurs will play a key role in creating and supporting UK economic growth, and to do so they need a banking sector that is aligned to their needs and way of thinking.”COLG StrategyTo date COLG has had a twin strategy focused on:-Recognise, its SME lending business. The banking licence represents a great leap forward-Milton Homes, its residential equity release business.
In the light of the PRA/FCA’s authorisation with restriction, the COLG board has concluded that it will not start writing new business through Milton Homes and it will remain in permanent run-off.Since its acquisition in October 2017, Milton Homes has repaid £4.8m of debt and related inter group interest. As at 31stMarch 2020, the net investment in Milton Homes by COLG was £11.8m; currently COLG has invested over £40m in Recognise.
The article appeared in Finextra on 12th Nov 2020
Recognise Bank launches a range of fixed rate and notice accounts as part of the bank’s mission to support the UK’s growing SMEs. Recognise Bank, one of the UK’s newest banks, has announced that it is entering the personal savings market with the launch of a range of fixed rate and notice accounts. Recognise Bank launched at […]
The culmination of a three-year journey to create a bank to serve the UK’s SMEs, removal of deposit restrictions allows Recognise to offer personal and business savings accounts. Recognise Bank has today announced the removal of deposit restrictions by the PRA (Prudential Regulation Authority), making it one of only a handful of banks to receive full […]