Fresh investment will support accelerated development
Commercial lender Recognise Bank has secured £8.7 million in new capital following the latest successful round of fundraising announced by the City of London Group (CoLG), the bank’s parent company.
The new capital will be used to support continued business lending, as well as the creation of a new team to further accelerate the bank’s digital innovation. This includes the creation of new products and fresh revenue streams.
A number of high-calibre appointments to the team have already been made and the first development projects will be announced soon, Recognise Bank said.
The latest investment comes from two of CoLG’s existing shareholders, PV27, the family office of real estate entrepreneur and digital pioneer, Ruth Parasol, and Max Barney Investment Limited, a London based property firm. PV27 and MBIL are exercising warrants received during the last fund raise in August 2021.
CoLG has so far raised almost £65 million in investment during its mission creating a new business bank for UK SMEs.
The bank recently achieved £100 million in lending, little more than six months after receiving its full authorisation by the PRA in September 2021.
“Recognise Bank has already made its mark in the business banking sector by hitting the challenging lending target we set, proving there is demand among the UK’s SMEs for our mix of relationship banking, supported by cutting edge technology,” Bryce Glover, chief executive at Recognise Bank, said.
“To receive this fresh investment from two of our keystone shareholders shows their continued support for Recognise Bank and commitment to our strategy and vision. Investing in our digital capabilities will help us build a world-class business bank, for today and the future.”
“We have consistently delivered on time and in line with our strategy to create a new bank for Britain’s growing businesses, firms that are the lifeblood of our economy, but are consistently ignored and let down by the mainstream banks,” Phil Jenks, chairman of the City of London Group, said.
“The latest investment from Ruth Parasol and Max Barney is an important moment for Recognise, because it means the bank can build on a foundation of £100 million in lending and £95 million in savings deposits to push its digital capability even further and create a bank that perfectly blends speed, service and innovation.”