New challenger SilverRock Bank has received banking authorization with restrictions from the Prudential Regulation Authority after completing a £50m funding round.
The startup plans to specialize in forward flow financing and portfolio acquisitions, servicing non-bank and specialist lenders as well as building societies. The returns from this investment will be utilized to offer attractive savings rates over time, complementing its lending services.
Alan Jarman, CEO of SilverRock, stated, “This is the first time that a bank has been established in the UK to specifically support non-bank and other lenders. The market already exceeds £250 billion and has substantial growth potential as it adapts to new and emerging customer needs.”
He added, “Our aim is to ensure that the borrowing needs of SMEs and consumers in non-standard credit markets are met. This approach will encourage and support innovation among lenders, allowing them to effectively address the challenges and opportunities in the UK market.”
The capital raised will enable SilverRock to advance its mobilization phase and, pending further regulatory approvals, to proceed to full launch plans. The current growth trajectory aims for a target balance sheet of £3 billion by 2029, with lending set to commence later this year.