Burnley Savings and Loans Limited – known as Bank on Dave – has launched a funding round of £2.5m on crowdfunding platform Seedrs.
The company – which is owned by businessman Dave Fishwick (pictured above) – will use the funding to support its application to become an authorised UK bank.
Having already lent nearly £20m to over 3,000 qualifying borrowers across the UK, the business hopes that becoming an authorised bank will allow it to expand its reach.
Once authorised, it will be known as Bank of Dave and is forecasting to achieve an annual operating profit of £4.5m before tax in year five of its plan.
Burnley Savings and Loans was established in 2011 in the wake of the financial crash and the impact it had on the North of England.
The business aims to provide affordable loans to individuals and SMEs who do not have access to mainstream finance.
“The core vision for Bank of Dave is to create an ethical, successful and sustainable bank which is distinctive from established UK banks, which we believe are falling short on supporting underserved individuals and small business,” said Dave.
“We have had a brilliant few years acting as a savings and loans provider, but the opportunity to become a fully authorised UK bank will expand our horizons even further, enabling us to help more people across the UK.
“We are delighted to be launching our first ever funding round on Seedrs, giving our hundreds of thousands of amazing supporters a chance to share in a new UK-owned high street bank.”
The funding raised on Seedrs will be used to support the procurement of IT systems and building of the bank’s infrastructure needed in preparation of it becoming an authorised bank.
“We are going through the authorisation process to become an authorised UK bank and are advancing towards this goal,” said Jim Bradley, CEO at Burnley Savings and Loans.
“We continue to witness a real market demand for financial providers that offer essential banking services to customers that traditionally find it difficult or are unable to access affordable credit.
“We are confident that once fully authorised that the Bank of Dave will be the bank that delivers this capability.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Gatehouse Bank strengthens specialist finance team
Gatehouse Bank has hired Zeenat Shaffi (pictured above) as a business development manager for its growing specialist finance team...
Close Brothers director to retire
Close Brothers Group PLC has announced that Elizabeth Lee, group head of legal and regulatory affairs, will retire from her executive director position at the end of the 2019 financial year...
Kent Reliance appoints two new senior BDMs
Kent Reliance – part of the OneSavings Bank Group – has appointed two new senior BDMs as it expands its nationwide offering...
Coutts partners with Mortgage Brain to offer products to intermediaries
Private bank Coutts has partnered with Mortgage Brain to make its products available – via the latter’s platforms – to UK intermediaries...
Charter Savings Bank launches two new accounts
Charter Savings Bank has introduced two new accounts: a 95-day notice account and a three-year fixed rate cash Isa...
FP Show reveals its largest and most diverse conference programme
The Finance Professional Show has confirmed its largest conference programme to date, hosting a selection of varied sessions throughout the event next month...
47% of SMEs prepared to move away from traditional banks
Almost half of SMEs in the UK (47%) would move to a challenger/digital bank or non-banking brand if they decided to switch, according to the latest research by Unisys Corporation...
Monese launches business account
Monese has launched a business account in the UK which will be bundled with its personal banking account...
Metro Bank provides £14m facility to support London office acquisition
Metro Bank has provided Kingsway Properties London with a £14m investment facility to support the acquisition of a five-storey office building in central London...
Tandem introduces new credit card blocking feature
Tandem has created a new card-blocking feature for its banking app which allows customers to react instantly to a misplaced card...
Trinity College Dublin secures €100m EIB facility
The European Investment Bank (EIB) has provided a €100m long-term loan to Trinity College Dublin for four capital developments across the campus...