Charter Savings Bank, a dedicated savings proposition, will launch in early 2015 following the approval of its banking licence by the Prudential Regulation Authority.
Precise Mortgages and Exact Mortgage Experts will continue with their current strategies but, along with the rest of the CCFS Group, will benefit from a more diversified funding model.
Alan Cleary, managing director of Precise Mortgages, said: “This is good news for our intermediary partners and our borrowers as being part of a bank gives us access to further funding sources, which will help us to continue with our strategy of helping those borrowers underserved by high street lenders. Precise Mortgages strategy remains unchanged by this announcement.”
The bank joins a small group of challenger brands who have recently moved into the retail banking space and comes at a time when savers are suffering from a lack of options from high street banks.
The online and telephone based proposition, which removes the cost associated with a physical presence on the high street, will be a UK bank for UK savers.
Ian Lonergan, Chief Executive Officer of CCFS added: “We see the development of a retail banking proposition as a logical extension for our business, enabling it to diversify into new markets and build a sustainable and competitive business model for the future.
“Being granted this licence by the PRA demonstrates the strength of our offering and the ambitious plans we have to champion savers and borrowers and help them realise their financial goals.”
To support the launch of the bank CCFS has made a number of senior board appointments. Philip Jenks becomes CCFS’ chair after a 40 year career in retail banking.
Ian Ward, former chief executive officer of Leeds Building Society has been named vice-chair and will be responsible for overseeing the savings proposition.
Tim Brooke, formerly a partner of PWC who has held senior positions at several retail banks joins the board with specific responsibility for overseeing the bank’s risk functions.
In addition, Ian Wilson joins with a wealth of retail banking experience as the bank’s chief risk officer.
The new bank is covered by the Financial Services Compensation Scheme, the UK's deposit protection scheme, which guarantees eligible customers’ deposits up to a total of £85,000.
