New Challenger Bank SilverRock Obtains Banking License

SilverRock Bank has today announced the granting of its banking authorisation with restrictions by the Prudential Regulation Authority following the completion of a £50m funding round. SilverRock’s unique business model and strategy is predominantly built to partner with non-bank and other lenders to support them to compete more effectively over the long term.

Alan Jarman, CEO of SilverRock, commented: “This is the first time that a bank has been established in the UK to focus support on non-bank and other lenders. This is already a £250 billion+ market which has the potential for significant expansion as the sector responds to new and emerging customer needs.

“Our focus is on ensuring the borrowing needs of SMEs and consumers in non-standard credit markets can be met. That approach will in turn support and facilitate innovation amongst lenders, enabling them to better respond to the challenges and opportunities in the UK market.”

An Ipsos SME Finance Report in 2022 noted that just 64% of SMEs were obtaining the finance they needed from their first provider, whilst some 11% of mortgage applicants are currently noted as requesting terms that fall outside the parameters required by mainstream providers. These examples highlight the type of market gap that non-bank lenders address.

The capital raise will see SilverRock through its mobilisation and – subject to further regulatory approvals – its full launch phases, with current growth plans projecting a target balance sheet of £3 billion by 2029. Lending is scheduled to start later this year.

Forward flow agreements mean that SilverRock will commits to purchasing loans or assets regularly from its lending partners. This ensures a reliable and continuous source of funding for lenders whilst diversifying the bank’s own investment portfolio, supporting the continuity of lending in the UK’s financial system and in turn fuelling economic growth.

Savers are also set to benefit from a proposition that will deliver strong and consistent rates over time, complementing the lending services and providing a competitive offering for savers.

Alan brings extensive retail and corporate banking experience across a 38 year career. Previously holding numerous executive roles in the UK, Eastern Europe and the Middle East spanning a large multinational, start-ups, mutuals and speciality lending businesses. Alan is also one of the most experienced executives in the challenger bank sector having been integral to three bank licence applications.