UK-based business bank CivilisedBank has decided to relinquish its banking licence less than a year after receiving it.
Targeting the SME business sector, CivilisedBank was awarded a banking licence in May 2017.
However, the firm has decided to spend more time developing its IT infrastructure before its launch.
The PRA and the FCA are aware of the plan and the decision is supported by the bank’s main shareholder, Warwick Capital Partners.
Chris Jolly, Non-Executive Chairman, CivilisedBank said: “The Board, with the support of our main shareholder Warwick, has decided to reapply for a banking licence rather than try to rush through our current IT development phase. For us, it is essential that we can deliver an optimal customer offering, so we prefer to delay this stage of our development and have more time to get it right.”
Ian Burgess, Co-Chief Investment Officer and Founding Partner, Warwick Capital Partners said: “We are fully supportive of the management team’s decision to extend the IT build phase with the subsequent impact on its banking licence. With the latest technology platform, CivilisedBank will stand out as a specialist bank offering a peerless banking service to the SME market designed to enable relationship banking and taking speedy credit decisions.”
The bank received funding as recently as February 2018 from its investor Warwick Capital Partners and had intended to launch in the first half of 2018.