Latest funding comes from the bank's largest investor
SME lender Recognise Bank has conditionally raised a further £25 million in investment, which will be used to support its commercial lending and development of new products and technology.
The new investment means Recognise has raised over £95 million so far. The bank offers a range of unregulated business loans, from commercial mortgages and bridging loans to professional buy-to-let loans, as well as FSCS protected savings accounts for both personal and business customers.
The latest investment comes from existing shareholder, PV27, a group investment company of Parasol International led by the family office of real estate entrepreneur Ruth Monicka Parasol, who is also a board member at Recognise Bank.
“As an entrepreneur and a successful businesswoman, I know how important good financial support from a business bank is, as well as how rare it is to find,” Parasol said. “The UK SME banking sector is ripe for change because it is dominated by incumbent banks saddled with ageing technology and an outdated approach to customer service and innovation.
“Recognise Bank’s impressive blend of expertise, insight, and digital innovation puts it in a very strong position to grow over the coming years, and I am delighted to be part of that journey.”
Jean Murphy (pictured), chief executive at Recognise Bank, added that they have shown that a bank embracing cutting-edge technology and a more personal approach can attract small firms in their thousands looking for a better deal.
“This latest funding from our largest investor shows how compelling the Recognise story is; a digital SME bank with a track record of successfully lending millions to growing businesses, and a savings proposition that has also attracted millions of pounds from thousands of SMEs by offering competitive rates,” Murphy said.
“Because of the economic challenges small businesses currently face, there has never been a greater need for a bank that supports SMEs. This investment shows that we have a like-minded investor who is just as passionate about helping UK entrepreneurs, and who believes Recognise is the right bank to provide that support.”
Philip Jenks, chairman of Recognise Bank, said the new investment shows how much the bank has achieved in a short period of time.
“We have quietly gone about the business of creating a new digital bank for SMEs, and we will continue to focus all our energy on growing Recognise,” he remarked.
Launched in November 2020 and receiving its full licence less than a year later in September 2021, Recognise has already supported thousands of small businesses with over £112 million in commercial lending and more than £117 million in business savings.
