- LHV Group commit to investing £4.45m in Series A raise
- We are confident we will close the Series A raise imminently with over 90% commitments received
- Bridge round oversubscribed at £3m and being extended to the end of May
- Regulatory capital the only outstanding threshold condition for the banking licence
- Nimisha Patel, Chief Digital Officer at the Cabinet Office, has been appointed as Independent Non-Executive Director
- Team continues to grow with several other impressive new hires
- Securing a debt facility to support early lending progressing well
- B-North have selected Nasstar (previously GCI) to provide core IT infrastructure support
Bank licence & Funding
- Bank licence
Regulatory capital is the only outstanding threshold condition for securing our banking licence. This will be secured via our £20m Series A raise. We have regular dialogue with the regulators and continue to make good progress.
- Series A funding
The Series A raise is progressing well with £18.8m committed, over 90% of target. LHV Group have committed to investing £4.45m when we receive our banking licence. The commitment from the major Estonian banking and financial services company marks an important step in our Series A fundraise. The investment from LHV Group adds to B-North’s growing list of high-profile backers, including Greater Manchester Combined Authority and Channel 4 Ventures.
- Bridge round extension
We have launched an extension of our successful Bridge round which to date has raised over £3m including investments from Channel 4 Ventures and Greater Manchester Combined Authority. The Bridge round is open again, with a target to raise an additional £500k. As we await authorisation from the regulators the Board believes it is a prudent approach to extend our cash runway beyond Q2 2021.
- Debt Funding
Once the banking licence has been secured we aim to start lending from our first Pod in Manchester. This will be an important milestone as the business becomes revenue generating and builds a track record ahead of the Series B raise. This will be managed by a debt facility of c£25m. We are in advanced conversations with 10 high quality institutions and expect to receive binding offers before the end of May.
- GCI/Nasstar update
B-North have selected Nasstar (previously GCI) to provide our core IT infrastructure support, plus the build and support of the Company Internal Network infrastructure which is due to complete in April.
Using Nasstar to provide Operational support, endpoint management and security monitoring means the B-North build scope is simplified while still retaining significant security, monitoring, control and world-class productivity enterprise tools and skillsets.
B-North has partnered with Testhouse, a leading technology quality and reliability consultancy.
B-North selected Testhouse for their extensive experience in financial services and tasked the firm with thoroughly testing the end-to-end loan origination process, including – the user experience, for B-North staff and brokers – and various data integrations between nCino, Mambu, Xero and Companies House. These are all key elements of the B-North offering as they allow the delivery of a smooth service to customers and brokers.
Testing was completed ahead of schedule with over 5,000 tests with only 1% requiring system modifications which are already well advanced.
Strengthening the Board
- B-North has appointed Nimisha Patel to the board as an Independent Non-Executive Director (NED)
Nimisha brings almost 20 years’ experience in Technology, Transformation and Risk Management for some of the biggest names in professional and financial services to B-North. Last year Computer Weekly named Nimisha as their Chief Information Officer of the year. Nimisha is currently Chief Digital Officer at the Cabinet Office, responsible for helping to shape the technology strategy of the UK Government.
Before joining the Cabinet Office, Nimisha was the UK and Ireland Chief Information Officer (CIO) at leading FTSE 100 listed insurer RSA. In this role she was tasked with shaping the firm’s IT strategy and services necessary to run the firm’s £3.1 billion portfolio, managing a global team of 780. Before she was appointed as CIO, Nimisha served as the company’s Director of Technology & Operations Risk Management.
In addition to her experience as a CIO, Nimisha has experience leading IT Audit and Technology Risk practices for Financial Services. Nimisha served as Director of Technology Risk at PwC, the second largest professional service company in the world. At PwC, Nimisha led the IT Internal Audit practice across Insurance and Investment Management.