Shawbrook is a new British bank which is just launched on Monday. It is a bank that is set to target small and medium-sized enterprises, particularly those that are struggling to get funding from some of the U.K.’s bigger banks.
Since the credit crisis began, there have been several new banks emerging including Metro bank and Aldomore. These are intended to challenge the big lenders in the UK which include RBS, Lloyds, HSBC, and Barclays. The government has recently been urging larger financial institutions to lend to small businesses so they can hire more staff and improve the unemployment situation in the UK. However, these banks are facing criticism because they are still not loaning enough.
Owen Woodley is the Chief Executive of Shawbrook and he has commented about the situation that, “Small and medium-sized enterprises are not being well served in the industry, we are hoping to improve the situation by offering loan opportunities to them that they have been refused at larger institutions.” The new bank is being partially financed by RBS but Mr Woodley has defended this fact saying that it would be an independent bank. He said “the vast majority of the money that we use to stop this bank was independent of RBS.”
Mr Woodley has also said that it intends to make £250 million worth of loans available to small businesses next year. He also said, “There is a definite demand here because companies are approaching larger banks and being turned down, there is no question in my mind that we will find a market for these loans that we are offering. The demand is there.”