GB Bank receives banking licence with aim to support ‘forgotten’ Northern developers

It said it aims to support property developers in regions of the UK that “have been forgotten about” by addressing funding shortage to encourage building activity.

The bank has set out to lend £3bn over five years and build a £1bn plus balance sheet. It has a target to fund almost 20,000 homes, along with several million square feet of commercial real estate, supporting the creation of over 100,000 jobs.

It will do this by providing SME property development loans in these “key underserved regions”. The loans will be between £1m and £5m.

It added that it hopes to become the “go to bank” for property developers in the North, and this would be done with the combination of its digital systems and building relationships with property developers.

GB Bank was founded by brother and sister, Stephen and Ella Black, along with Stephen Lancaster, who was founder and managing director of Envue.

The senior team is led by chair Paul Rippon, who co-founded Monzo and Starling, and chief executive Sue Hayes, who was previously Aldermore Bank’s group managing director of retail finance.

Hayes said: “We are delighted to have gained the confidence of the regulator and receive our banking licence. This is a landmark day for GB Bank, bringing to fruition the hard work of our team to build a new specialist bank that provides much needed financial support to property developers in underserved regions, as well as savings rates that the UK public will love.”

She also thanked shareholders for their “valued support” and also thanked the Teeside Pension Fund, which invested £20m in the company last year and have since confirmed a further commitment of £28m.

She added: “We are determined to be a powerful force in the regions and GB Bank’s purpose goes beyond lending money. Our team is passionate about supporting property developers in areas that have been forgotten about. We want to lead and support the movement to level up the North and get Britain building again.”

Rippon said: “As the UK recovers from the pandemic it is becoming even more important that we improve the provision of finance to small businesses. GB Bank is perfectly positioned to better serve regional developers who will help Britain build more homes and spaces and drive economic prosperity for all.

“Obtaining our provisional banking licence is real testament to what the team has delivered so far, and I believe with our experience and expertise we are strongly placed to bring about real change to this market.”