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- A new business bank is to be founded by Jonathan Rowland and Gary Wilkinson, which will offer SME commercial mortgages and business deposit accounts - Investment of £50m ancipated over the next five years - Inially, focus will be on UK SMEs in Herordshire, Bedfordshire and Buckinghamshire Acorn Financial Partners Ltd (“AFP”), a new venture founded and led by Jonathan Rowland, today announced that it has submied a banking licence applicaon to the Financial Conduct Authority (“FCA”) and the Prudenal Regulaon Authority (“PRA”). On Authorisaon 1 AFP will be called “Redwood Bank,” a new UK SME bank, and it ancipates receiving its banking licence early in 2017 and opening to customers later the same year. AFP’s majority shareholder is Acorn Global Investments Ltd (“AGI”), a company controlled by David and Jonathan Rowland, who have extensive experience and a successful track record in the banking and finance sectors. AGI was established in 2015 to invest in financial services and in parcular the banking sector. It will connue to be the majority shareholder of the bank and is supported by a number of very successful investors including: Wildcat Capital Management, Rick Gerson (Founder of Falcon Edge) and David “Tiger” Williams (Founder of Williams Trading). It is ancipated that current and new shareholders will invest £50m in the bank over the next five years. Jonathan Rowland, played a leading role in the restructuring and subsequent recapitalisaon of Kaupthing Bank Luxembourg, the Luxembourg subsidiary of Kaupthing Iceland, into Banque Havilland S.A. and Banque Havilland (Monaco) SAM. Jonathan was Chief Execuve and a Director between 2009 and 2013. The senior management team of Redwood will be led by Gary Wilkinson as Chief Execuve, subject to regulatory approval. Gary has over 30 years’ experience within financial services, and is the former Chief Execuve of Cambridge & Counes Bank, which provides lending and deposit products for SMEs. Gary led Cambridge & Counes’ successful authorisaon and launch in 2012 and its move into profit aſter just 13 months. Prior to this Gary held a number of senior roles in the banking and building society sectors. Headquartered within its “Heartland Region” and on the border of Bedfordshire and Herordshire, Redwood (www.redwoodbanking.co.uk) will offer secured SME lending products to owner occupied businesses, as well as to experienced commercial and residenal property investors. It will also provide business deposit accounts. The bank will provide a highly personalised, relaonship- driven service through a team of Business development managers covering its Heartland Region of Herordshire, Bedfordshire and Buckinghamshire and beyond, coupled with a naonal network of brokers and a sophiscated digital distribuon channel for deposits. Redwood believes that the uncertainty caused by Brexit and connuing legacy problems from the credit crisis will connue to restrict appete among the mainstream banks to engage in commercial property lending and loan rejecon rates will remain high. As a result, the SME funding gap, which has remained significant since the financial crisis, is likely to widen sll further. Jonathan Rowland said: “This is an ideal me to apply for a full banking licence; the major banks have not returned to anywhere near their pre-crisis business lending levels and the uncertainty caused by Brexit is likely to worsen the situaon. At the same me, SMEs have shown a strong appete for new market entrants offering compeve rates and superior customer service. Against this backdrop, we have a compelling opportunity to build a secure, robust and profitable bank.” Gary Wilkinson added: “I am excited to be working with Jonathan Rowland and Acorn Global Investments Ltd on the launch of a new business bank at a me when the need for finance among small and medium sized businesses could not be greater. I am certain that Redwood’s relaonship- driven, agile and tradional approach, combined with straighorward and transparent products, will resonate among ambious business owners seeking to grow over the coming years.” 16 October 2016 REDWOOD SUBMITS BANKING LICENCE APPLICATION 01 www.redwoodbanking.co.uk Note 1: Acorn Financial Partners Ltd is a company that has been formed to launch a new business bank. It has submied an Applicaon for a banking licence to the Prudenal Regulaon Authority (PRA) and the Financial Conduct Authority (FCA). Unl it receives Authorisaon and is then regulated as a bank, please do not take any informaon in this release to indicate that Redwood is yet Authorised, or as an invitaon or inducement to apply to Acorn Financial Partners Ltd for any banking services or products.
