22 September 2017
Visit http://response.ncr.com

UK challenger bank launches as proptech market hots up

29 August 2017  |  9714 views  |  1 Savings house in hands

Redwood Bank, a new challenger bank providing mortgages to small businesses and professional landlords, has opened its doors four months after it was granted a banking license.

The bank opening is an example of the growing momentiume behind so-called proptech as the property market and mortgage sector becomes the latest to be targeted by tech-led startups and challenger institutions.

“As many traditional banks are hampered by poor lending practices from their past and their legacy systems, we are perfectly positioned to help British SMEs take advantage of property opportunities by offering a highly-tailored service for clients that is built around our very experienced regional managers,” said Redwood founder and chief executive Gary Wilkinson.

Redwood Bank, which counts Warrington Borough Council as major stakeholder in parent company Redwood Financial Partners, will specialise in providing loans worth between £50,000 and £1.5m and for terms between 2 to 25 years. 

The launch of Redwood Bank comes at the same time as Blend, a startup designed to make the online mortgage process easier, has secured a $100m investment from Silicon Valley investor Greylock, taking its total funding to £160m and its market valuation to $500m.

Blend has also recently struck and an agreement with two US banks, Wells Fargo and US Bancorp, to have its software used as part of the banks' mortgage application processes as the incumbent lending institutions bid to fight off a swathe of non-bank competitors and startups that have targetted the mortage and lending sector. 

Blend CEO and founder Nima Ghamsari said the capital could also be used to grow its staff and explore additional opportunities to use its technology for other lending products and services.

“The opportunity for our technology in the $40 trillion consumer lending market is huge, but the industry won’t change overnight,” Ghamsari wrote. “To realise our goals, we need to continue scaling and bringing together the best talent, partners, and backers to get us to the next level.”

Comments: (1)

Graham Smith
Graham Smith - ProveIT - Bury | 29 August, 2017, 11:43

It was only a question of time before they and other start ups get into this dinosaur out of date and old fashioned thinking market and then Amazon, google Facebook and Tesco and Sainsburys start leading the way and taking away their bread and butter

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

ABN Amro IT takes share of blame for mortgage malpractice

ABN Amro IT takes share of blame for mortgage malpractice

09 June 2017  |  8114 views  |  1 comments | 6 tweets | 5 linkedin
UK banks failing customers in digital mortgage market

UK banks failing customers in digital mortgage market

01 June 2017  |  7814 views  |  0 comments | 10 tweets | 17 linkedin
OCBC Bank launches Emma, the mortgage chatbot

OCBC Bank launches Emma, the mortgage chatbot

05 April 2017  |  12741 views  |  0 comments | 12 tweets | 21 linkedin
Chase preps digital mortgage platform

Chase preps digital mortgage platform

16 February 2017  |  6119 views  |  0 comments | 7 tweets | 7 linkedin
Is proptech the new fintech? Trussle follows Habito with £4.5 million round

Is proptech the new fintech? Trussle follows Habito with £4.5 million round

01 February 2017  |  8470 views  |  0 comments | 15 tweets | 5 linkedin
Habito secures £5.5 million investment to shake up the mortgage industry

Habito secures £5.5 million investment to shake up the mortgage industry

23 January 2017  |  6621 views  |  0 comments | 6 tweets | 5 linkedin
Atom Bank launches mobile mortgages

Atom Bank launches mobile mortgages

06 December 2016  |  8807 views  |  0 comments | 23 tweets | 23 linkedin
Westpac pumps $16.5 million into digital mortgage startup uno

Westpac pumps $16.5 million into digital mortgage startup uno

14 September 2016  |  6755 views  |  0 comments | 11 tweets | 4 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.temenos.comvisit www.vasco.comvisit www.sibos.com

Top topics

Most viewed Most shared
HSBC switches on selfie payments in ChinaHSBC switches on selfie payments in China
12473 views comments | 26 tweets | 42 linkedin
Equifax hack: Visa and Mastercard flag 200k compromised credit cardsEquifax hack: Visa and Mastercard flag 200...
10949 views comments | 6 tweets | 17 linkedin
Dutch bank sentences teenage DDoS culprit to community serviceDutch bank sentences teenage DDoS culprit...
9525 views comments | 6 tweets | 3 linkedin
Apple P2P payments service nears launchApple P2P payments service nears launch
8148 views comments | 18 tweets | 26 linkedin
UAE banks pool cyber security dataUAE banks pool cyber security data
8112 views comments | 5 tweets | 4 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job