SilverRock Secures Banking License As Challenger Bank

SilverRock Bank has recently obtained its banking authorisation with restrictions from the Prudential Regulation Authority, marking a significant milestone following a successful £50m funding round. With its unique business model and strategy, SilverRock aims to collaborate with non-bank and other lenders to enhance their competitiveness in the long run.

Alan Jarman, CEO of SilverRock, expressed enthusiasm about the bank's establishment, emphasising its focus on supporting non-bank and other lenders. He highlighted the substantial potential for growth within this market, estimated at over £250bn, as the sector adapts to evolving customer needs.

SilverRock's primary objective is to address the borrowing requirements of SMEs and consumers in non-standard credit markets. By doing so, the bank aims to foster innovation among lenders, enabling them to better navigate the challenges and opportunities in the UK market.

Market research, such as the Ipsos SME Finance Report in 2022, underscores the importance of non-bank lenders in addressing market gaps. For instance, only 64 per cent of SMEs were reported to obtain the necessary finance from their initial provider. Additionally, approximately 11 per cent of mortgage applicants seek terms that mainstream providers do not offer, highlighting the role of non-bank lenders in meeting diverse customer needs.

The recent capital raise will support SilverRock through its mobilisation and eventual full launch phases, subject to further regulatory approvals. The bank aims to achieve a target balance sheet of £3bn by 2029, with lending activities expected to commence later this year.