Brand new challenger SilverRock Bank has received authorisation with restrictions by the PRA.
The announcement follows the completion of a £50m funding round that is expected to see the bank through its mobilisation and full launch phases.
SilverRock will predominantly partner with non-bank and specialist lenders to support them with forward flow agreements and portfolio acquisitions, with current growth plans projecting a target balance sheet of £3bn by 2029.
According to its website, SilverRock doesn’t have direct lending on its agenda — instead it aims to become the UK’s “go-to bank” for funding as a service solutions for lenders.
The bank will commit to purchasing loans or assets regularly from its lending partners, offering a reliable source of funding for lenders while diversifying the bank’s own investment portfolio.
The company will look at asset types including residential owner-occupied mortgages, residential BTL mortgages, SME-focused asset-backed finance, commercial BTL mortgages, and unsecured lending.
Lending is scheduled to start later this year.
Alan Jarman (pictured above), who has 38 years of retail and corporate banking experience and been integral to three bank licence applications previously, will be leading the business as SilverRock’s CEO.
“This is the first time that a bank has been established in the UK to focus support on non-bank and other lenders,” claimed Alan.
He said that this market had the potential for “significant expansion” as the sector responds to new and emerging customer needs.
“Our focus is on ensuring the borrowing needs of SMEs and consumers in non-standard credit markets can be met.
“That approach will in turn support and facilitate innovation among lenders, enabling them to better respond to the challenges and opportunities in the UK market.”
Savers are also set to benefit from a proposition that will deliver strong and consistent rates over time.
Veronika Lovett, co-founder of Esme Loans, has been named as chief commercial officer and deputy CEO.
The leadership team also includes chief finance officer Christopher Fox, chief risk officer James Pearson, chief operating officer Lucy Hasson, and head of product Ben Mitchell, among others.
Andrea Hodgson, who is currently CFO at Cambridge & Counties Bank, is on SilverRock’s board as chair audit committee.
