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Q4 2020 Update

- 21 JAN 2021

Q4 update header image

Highlights

  • Bridge Round raised over £2.8m to date
  • Greater Manchester Combined Authority and Channel 4 Ventures invest in Bridge round
  • Regulatory capital the only outstanding threshold condition for the banking licence
  • Series A raise progressing well with c.70% commitments received
  • Team continues to grow with several impressive new hires and Manchester Pod team is now in place
  • Extensive coverage of our Greater Manchester Combined Authority and Channel 4 Ventures investment.

 

Re-cap: Our unique proposition

  • UK-wide local delivery – Regional Pods (local banks) for SME focus and face-to-face relationships
  • Secured Loans £0.5m-£5.0m tailored to the specific needs of the borrower. Front-line bankers, underwriters and valuers support more flexible finance proposals
  • Delivered with speed – providing secured finance decision making and lending up to 10 times faster than the market standard for traditional banks
  • Embracing the broker channel – our model will ensure B-North is the preferred partner for high quality brokers
  • Competitively priced – banking model delivers access to low-cost funding
  • Banking licence – threshold conditions met subject to Series A capital raise
PRA August 2020

“We have been impressed by the quality of your documents and our interaction”

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. Once commitments are in place we will submit the relevant information to the regulators.

  • Bridge round

The Bridge funding round has been a great success and has resulted in £2.8m total funding from 385 investors - of whom 38% were new investors - and includes £0.5m of Management investment

  • Series A fundraising

The Series A raise is progressing well with high quality institutional investors to date committing £13.75m, 69% of target. We aim to secure the remaining commitments in the coming weeks prior to sharing details with the Regulators for their approval.

Commercial Lending

  • Market update

The market environment remains challenging for SMEs in this unprecedented economic climate and access to finance remains key to the survival of businesses. The broker network helped originate £27bn of lending in 2020 including £6.1bn of CBILS facilities, with increased demand for finance year on year, a trend expected to continue resulting in the UK banking and finance industry having to deliver unprecedented levels of support to SMEs throughout 2021 and beyond.

  • Market Testing

We continue to work with our partners and professional contacts to test our products and positioning in the market. The results are very encouraging with B-North being able to provide an indicative offer to a staggering 78% of lending opportunities. We have clear USPs which differentiate us from the competition and a highly skilled team who pride themselves on delivering tailored finance at pace. Our broker partners are fully engaged and eager for us to work together to support the SME population by bringing our outstanding proposition to market.

  • High calibre team ready to launch Manchester Pod

The North West Pod is the flagship office for B-North, we have all our recruitment lined up and eager to start, we have secured some amazing talent with diverse backgrounds which creates a really strong team.

With the customer at the heart of everything we have created a lending journey that is as frictionless as possible, and we are in a great place to commence lending.

Becky Owen, MD North West Region

We have built a bank focused on getting things right for the customer rather than being constrained by legacy issues, which has been a very rewarding process.

I am excited to bring to market our outstanding proposition, delivered by a highly skilled team underpinned by world class technology

New starters pic

Team

Further development of the team:

  • Matt Dobson, Treasurer

A highly experienced commercial banker has joined as Treasurer and will play a key role in the running of the bank. Matt was previously Finance Director at the Furness Building Society, before which he was Head of Debt Capital Markets at RBS spinout Williams and Glyn. Before this, Matt spent 15 years at Barclays, culminating in his role as Managing Director (Treasury).

  • Jackie Ewer, Head of Operational Risk & Compliance

Has over 30 years' Financial Services experience, holding senior manager roles within Audit, Risk & Compliance across Global Banking & Markets including Citigroup, Bank of America and RBS. Prior to joining B-North, Jackie held the SMF16 Head of Compliance and Operational Risk for Al Rayan Bank and most recently was providing Audit consultancy services for Bank of America.

  • Chris Pendlebury, Development & Integration Manager

Has a long track record of managing the deployment of IT systems and will oversee internal development of B-North applications and integration and will ensure regular updates of the platform.

  • Matthew Kenny, Senior QA and Test Manager

Brings with him a wealth of experience in financial services as a testing analyst and manager, having overseen testing at leading payments company and Mastercard subsidiary Vocalink and will oversee the implementation of B-North's QA testing capability.

BOLT Testing

B-North partner, TestHouse, has carried out functional testing on B-North’s Origination Lending Technology platform (BOLT) .

The TestHouse test scenarios and scripts were developed and consisted of a suite of circa 6,000 individual tests, encompassing the end to end loan origination process – from initial enquiry through to disbursement of funds and repayments.

Testing was completed ahead of schedule with an incredibly high success rate.

 

In the News

Business Money: GMCA and Channel 4 Ventures invest in B-North's latest capital raise

NW Business Insider: B-North secures £250k from GMCA

Commercial Reporter: Broker and Bankers - working together

TheBusinessDesk.com: Funding and media support for fledgling challenger bank