Warrington Council Redwood Bank

Council approves £30m investment in newly licensed bank

Warrington Borough Council has agreed to a £30m investment in Redwood Bank after the SME lender secured its banking licence from the FCA and PRA.

The council also acquired a 33% shareholding in the bank’s owner Redwood Financial Partners, in what the lender claims is the first time a borough council has entered a partnership of this kind.

Redwood Bank will now enter its mobilisation phase amid plans to launch to customers later in 2017.

Jonathan Rowland, co-founder of Redwood Bank (pictured above, right), said: “Securing a banking licence [from] the PRA and the FCA underlines the strength of our business model and the calibre of our experienced management team. 

“With the opportunities being created by Brexit and the financial services sector’s rehabilitation, this is a great time to be entering the market.

“It’s clear that the council shares our vision to create a robust, secure and profitable bank that is not only well placed to deliver strong returns, but also to stimulate sustainable economic growth in Warrington and the surrounding area.”

Redwood Bank will offer secured SME lending products and business deposit accounts to owner-occupied businesses, as well as experienced commercial and residential property investors.

The council’s investment will enable the bank to open a northern regional office in Warrington ahead of its launch.

This new location will be in addition to Redwood’s headquarters in Letchworth, from which its team of BDMs will serve SMEs throughout the southern and eastern regions of Hertfordshire, Bedfordshire and Buckinghamshire.

Cllr Russ Bowden, executive board member for corporate finance at Warrington Borough Council, added: “This is a really important deal for Warrington and part of our commitment to innovative financial approaches, which support growth and sustainability in the borough. 

“We see our stake in the company as an investment in our future.

“It’s about investing in our local economy, helping businesses thrive and generating income which will enable us to protect council services.”

Also pictured: Gary Wilkinson, co-founder and chief executive of Redwood Bank

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