Jonathan Thompson, CEO, and David Broadbent, CFO, of Bank North gave a 30-minute presentation followed by a Q&A outlining how Bank North will disrupt the £150bn UK SME lending market with its fintech-enabled but locally-pod-empowered bank model. The key features included the focus on experienced and incentivised people, empowered with state-of-the-art, scalable and efficient technology and embedded in local communities with local relationships. The model is targeted a specific sub-segment of the SME market (typically base rate +3.5% to 6% lending) and driven by a super service proposition.
Jonathan and David outlined progress with the first pod and the current expectation of financials, the outlook and the benefits from deposit fundings. In a wide-ranging Q&A session topics inter alia included competition, funding, credit risk, returns to investors and the pod model.
Bank North is being developed to serve the huge UK SME lending market. It has progressive technology, a regional pod model and experienced managers to deliver a best-in-class service to SMEs and commercial brokers, to whom it will offer an unparalleled service and a unique remuneration model. It will be funded through best-buy retail deposit-comparison websites. The model should have a material cost advantage over competitors, and the credit risk is being tightly managed.