The lender, which received its banking licence in November last year, is currently not authorised to take deposits but by meeting capital requirements it can apply for approval to launch savings products for personal and business customers.
According to Recognise Bank, it plans to offer savings accounts to personal customers in the coming weeks, then business customers later this year and personal savers in the next five years.
The capital raise includes an additional £10m investment by existing shareholder Ruth Parasol, who is real estate investor and entrepreneur Ruth Parasol.
She said: “Recognise is the right bank, with the right team, to change SME business banking in the UK. Recognise combines personal service with the cutting-edge digital banking technology to increase speed and service to its customers. As a fully authorised bank, Recognise will be able to offer a much wider range of services to business and personal customers.”
Jason Oakley (pictured), chief executive officer of Recognise Bank, said: “This is a major milestone in our journey to create Recognise Bank and change the complexion of SME banking in the UK.
“We set out on a mission to help the UK’s growing small and medium sized businesses, who need expert support more now than ever before. This successful capital raise is proof that we are on the right trajectory.”
The bank currently offers commercial mortgages, bridging loans, working capital loans and professional practice loans for architects and solicitors, as well as the medical and healthcare sectors. It plans to launch buy to let loans in the near future.
Since it opened its doors last year, it has received £750m in lending enquiries and is targeting £1.3bn in lending to more than 5,000 SME borrowers over the next five years.