BRITAIN’S newest business bank – in which Warrington Borough Council has a 33 per cent stake – has officially opened.
Its North West regional office is in Warrington – at The Base, in Dallam Lane – and is ready for business.
The bank will help support the local economy while generating a return for the council, targeting secured lending to local Small Medium Sized Enterprises (SMEs), as well as national businesses to drive economic growth in Warrington.
Cllr Russ Bowden, deputy leader of the council and lead member for corporate finance said: “We are gaining a fantastic reputation for our innovative financial practices, which are supporting the growth of the local economy and helping us protect council services. Our partnership with Redwood Bank is the latest example of how we are doing business, to secure a better future for the borough.
“It’s fantastic news that, having been granted its initial banking licence only a few months ago, Redwood Bank is already up-and-running in Warrington. I’m looking forward to it giving a real boost to the local economy and helping Warrington businesses thrive.”
It is just over four months since Redwood secured its initial banking licence and already it is offering secured SME mortgages for business owners, as well as for experienced commercial and residential property investors. It has also launched a competitive business deposit account. Its speed to market is the result of a combination of factors, including having a very experienced and proven management team, and the fact that it’s the first business bank with 100 per cent cloud- based infrastructure, which improves efficiency as well as security.
The bank has a unique ownership. It is wholly-owned by Redwood Financial Partners Ltd, a company controlled by Jonathan and David Rowland, in which Warrington Borough Council has a 33% stake. As part of this, the council’s executive board has approved an investment of £30m in Redwood as part of the bank’s capital funding.
Redwood Bank iis headquartered in Letchworth, from which an experienced team provides a highly personalised, relationship-driven service nationwide. The bank’s main focus will initially be Hertfordshire, Bedfordshire and Buckinghamshire as well as in Warrington.
Gary Wilkinson, co-founder and chief executive of Redwood Bank, said: “We are delighted to be open for business so soon following the issuing of our initial banking licence. We aim to offer a real alternative for small and medium sized organisations, providing them with simple transparent loans and savings accounts, great service and a promise that our money is being invested into British businesses and our local communities.
“As many traditional banks are hampered by poor lending practices from their past and their legacy systems, we are perfectly positioned to help British SMEs take advantage of property opportunities by offering a highly-tailored service for clients that is built around our very experienced regional managers.”
Mr Wilkinson will oversee the day-to-day running of the bank, and will be supported by an experienced management team. The board includes Jonathan Rowland, co-founder and non-executive director of Redwood Bank, as well as David Buckley, who became chairman in June this year. Mr Buckley has held various senior roles in financial services companies including Morgan Stanley, Morgan Stanley Bank International and Goldman Sachs and is currently Independent non-executive director and chairman of the Audit Committee for CIBC World Markets Plc.
As well as providing tailored lending products to business owners and professional landlords, Redwood Bank has also launched a 35 Day Business Savings Account offering 0.45 per cent AER variable. Redwood Bank is covered by the Financial Services Compensation Scheme (FSCS), the UK’s deposit protection scheme, which protects customers’ eligible deposits up to a total of £85,000.
