Challenger bank, Recognize Bank, will benefit from £8.7 million in new capital following the latest successful funding round announced today by the City of London Group (CoLG), the bank’s parent company. This means CoLG has raised almost £65m in investment so far during its mission to create a new commercial bank for UK SMEs.
Recognize has recently raised £100m in loans, just over six months after receiving its full PRA approval in September 2021. Its personal savings accounts have topped the best buy charts and attracted £95m in deposits to date, followed by the introduction of business savings accounts in April.
The new capital will be used to support continued corporate lending and the creation of a new team to further accelerate the bank’s digital innovation, including the creation of new products and new revenue streams. The team has already been filled with top-class staff and the first development projects will be announced shortly.
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 (MBIL), the London-based real estate firm. PV27 and MBIL are exercising warrants received during the last fundraising in August 2021.
Bryce Glover, CEO of Recognize Bank, said: “Recognize Bank has already made a name for itself in the commercial banking sector by meeting the challenging lending target we have set ourselves and proving that there is a demand among UK SMEs for our Mix consists of relationship banking, backed by cuts edge technology.
“Receiving this new investment from two of our major shareholders demonstrates their continued support for Recognize Bank and their commitment to our strategy and vision. Investing in our digital capabilities will help us build a world-class commercial bank for today and the future.”
Phil Jenks, Chairman of the City of London Group, said: “We have consistently delivered on time and in line with our strategy to create a new bank for Britain’s growing businesses, businesses that are the lifeblood of our economy but are consistently ignored by the Mainstream banks let down.
“The recent investment by Ruth Parasol and Max Barney is an important moment for Recognize as it means the bank can build on a foundation of £100m in loans and £95m in savings to push its digital capabilities even further and a bank that perfectly combines speed, service and innovation.”