UK-based SilverRock Bank has announced that it secured its banking authorisation from the Prudential Regulation Authority after receiving GBP 50 million in funding. Being granted with restrictions by the Prudential Regulation Authority, the banking licence is set to support SilverRock Bank’s development strategy, with the financial institution providing a model that allows it to partner with non-bank and other lenders to assist them to compete more efficiently over the long term.

SilverRock Bank’s capabilities and plans According to SilverRock’s officials, the bank was established in a bid to support UK non-banks and other lenders, as the market has significant expansion potential due to it responding to emerging customer needs. The financial institution intends to ensure the borrowing needs of small and medium-sized enterprises (SMEs) and consumers that operate in non-standard credit markets, with the approach also focusing on facilitating innovation amongst lenders. Additionally, it aims to enable them to have improved responses to the difficulties and opportunities the UK market currently presents. Furthermore, the capital injection of GBP 50 million is set to assist SilverRock through its mobilisation and launch phases, with them still being subject to further regulatory approvals.

Also, the financial institution plans to start lending by the end of 2024. The upcoming flow agreements are set to commit SilverRock to acquiring loans or assets regularly from its lending partners, ensuring a reliable and continuous source of funding for lenders. Moreover, this supports the diversification of the bank’s investment portfolio and contributes to the continuity of lending in the UK’s financial landscape.

SilverRock Bank is committed to supporting non-bank lenders in bridging the market gap that is showcased in an Ipsos research from 2022. The report notes that 64% of SMEs obtained the finance they required from their first provider, while 11% of mortgage applicants were noted as requesting terms that were not located in the parameters needed by mainstream providers. .