Oldfield, who founded Castle Trust, will remain on the board as a non-executive director.
Castle Trust will hire Martin Bischoff as chief executive after Sean Oldfield opted to step down after seven years in the role to start a new venture.
Bischoff is currently an executive business adviser for Virgin Money and before that he was managing director of retail distribution at Santander UK for more than five years.
Oldfield, who founded Castle Trust, will remain on the board as a non-executive director.
He said: “I am incredibly proud of building Castle Trust from scratch into a substantial business today.
“As we prepare to move from being a speciality finance provider into a bank, it is an appropriate moment for me to consider a new challenge for the next stage in my professional career. I am looking forward to continuing to play a part in Castle Trust’s development as a non-executive director.
“I am also keen to maintain the very strong partnership that I have built with J.C. Flowers & Co., who have been such supportive shareholders and business partners in the growth of Castle Trust and are underpinning the Company’s move to become a Bank.
“I am grateful to J.C. Flowers & Co. for their support for me handing over the reins at this point to Martin Bischoff.
“Martin is a seasoned retail banking CEO and is steeped in the experiences required to build and scale a successful retail banking operation.
“I have the greatest confidence in his ability to lead the business from strength to strength.
“Handing the reins over to Martin will allow the business to benefit from an experienced retail banker to lead the business in its next phase, and allow me to move on to establish a credit-focussed investment manager, which plays to my personal strengths and experiences.”
Bischoff’s move is subject to regulatory approval.
He said: “I am enthusiastic about joining at this exciting moment in the history of the company.
“Castle Trust has a bright and secure future as it grows its specialist lending businesses that we can all be proud of and committed to.”
Tim Hanford, managing director in charge of J.C. Flowers & Co. Europe, said: “As the founder and chief executive of Castle Trust, Sean has built Castle Trust from nothing into a thriving business with five business lines, over 200 people and £750m of assets.
“We have enjoyed playing our part as major shareholders in creating such a strong business and are excited that Castle Trust is now ready to take the next step and apply for a banking licence, enabling the business to continue to scale its offering for customers.
“Sean is a natural entrepreneur and we understand his desire to start a new venture. We wish him every success with his new business and look forward to continuing to benefit from his experience on the board.
“Looking forward, we are excited about Martin Bischoff joining the team, and have every confidence that he will build on the existing platform to take Castle Trust to continued success.”
