Recognise Bank secures £25m in investment to grow loan book and launch products

The investment comes from existing shareholder, PV27, which is the group investment company of Parasol International.

Recognise Bank said the investment showed “continued support” for the firm as well as its “strategy to become a full-service digital SME bank”.

The lender launched in 2020 and gained its full banking licence from the Prudential Regulatory Authority in September last year.

Since then, it has lent over £112m in commercial lending and over £117m in business savings.

The latest funding round takes Recognise Bank to more than £95m raised so far.

It offers unregulated business loans, including commercial mortgages and bridging loans.

Recognise Bank also entered the buy-to-let market last year with its offering aimed at professional landlords.

Founder and then-CEO Jason Oakley left the firm earlier this year, with Jean Murphy (pictured) appointed as chief executive in August.

Murphy said: “This latest funding from our largest investor shows how compelling the Recognise story is; a digital SME bank with a track record of successfully lending millions to growing businesses, and a savings proposition that has also attracted millions of pounds from thousands of SMEs by offering competitive rates.

“Because of the economic challenges small businesses currently face, there has never been a greater need for a bank that supports SMEs. This investment shows that we have a like-minded investor who is just as passionate about helping UK entrepreneurs, and who believes Recognise is the right bank to provide that support.”

Ruth Monicka Parasol, Recognise Bank board member and investor, said: “As an entrepreneur and a successful businesswoman I know how important good financial support from a business bank is, as well as how rare it is to find.

“The UK SME banking sector is ripe for change because it is dominated by incumbent banks saddled with ageing technology and an outdated approach to customer service and innovation.”

She added: “Recognise Bank’s impressive blend of expertise, insight and digital innovation puts it in a very strong position to grow over the coming years and I am delighted to be part of that journey.”

Philip Jenks, chairman of Recognise Bank, said: “This new investment shows how much Recognise Bank has achieved in a short period of time and sets the bank up for a bright and successful future.

“We have quietly gone about the business of creating a new digital bank for SMEs and will continue to focus all our energy on growing Recognise, with the backing of our largest shareholder, one of the best management teams in the business and an energised team of colleagues.”