Chetwood Financial Secured Full Banking Licence

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  • PRA approves Chetwood Financial for a full banking licence, making it the only retail bank granted approval in 2018
  • Bank receives £40m investment from Elliott Advisors (UK) Limited (“Elliott”) as part of its £150 million debt and equity commitment announced early 2018
  • Wrexham-based Chetwood has been lending since early 2018, with first savings product due in early 2019
  • Bank recently (Nov 2018) launched the LiveLend Reward Loan, the world’s first dynamic loan

Chetwood Financial has secured a full banking licence from the Prudential Regulation Authority (PRA) – the only retail bank to do so in 2018.

Chetwood has also received a £40 million investment from Elliott as part of the £150 million debt and equity commitment made in early 2018.

The bank claims to differ from the traditional banking model of “owning customers” and cross-selling products. Instead, it focuses on serving distinct customer segments that are currently underserved by the market, with products designed specifically for their needs.

News of the approval follows the launch of Chetwood’s latest product under its consumer-lending brand, LiveLend. Billed as the world’s first ‘dynamic’ loan, the LiveLend Reward Loan grants borrowers better rates as they improve their credit score, so their monthly payments fall as a result of good financial behaviour.

Designed for everyday people without the highest credit strength, the loan monitors the customer’s credit score and delivers rate cuts every three months. For every 25 points of improvement in credit score, 2% is shaved off the rate.[1]

Before the launch of this dynamic loan, LiveLend had lent millions to customers in standard loans since it launched in February 2018. During mobilisation, the bank has also been developing and testing its first savings product, which will launch in early 2019.

Chetwood operates on a new, cloud-based technology platform, Yobota, which enables it to break the traditional financial services mould. With a quicker and more flexible platform, the bank is able to deliver responsive and dynamic products, not yet seen elsewhere in the industry.

Both Chetwood and Yobota were founded in 2016 by ex-HSBC senior banker Andy Mielczarek and technology strategist Mark Jenkinson, with a clear mission to serve the under-served, and spark fresh innovation in the financial services sector through the use of new technology.

By working with partners and making the most of modern technology, Chetwood – which is based in Wrexham – also operates with much lower costs, enabling it to pass savings onto customers through its competitively priced products.

Chetwood CEO, Andy Mielczarek said: “Despite earning our banking licence, we’re not just another “challenger bank”. Our focus is on identifying market failings and developing specific products that can really make a difference for targeted groups of people. We became a bank so that we can deliver products that real customers need.

Using technology to make people better off is at the heart of what we do – we’ve already proven this with LiveLend, our dynamic loan, and we have really exciting plans to follow that with a range of new, fair and innovative products that serve the needs of our customers.“

Chetwood COO, Mark Jenkinson added: “At a time when other industries are using technology to advance and innovate, the banking sector is lagging behind. Despite billions invested in tech by the banking sector over the years, the financial products on offer haven’t changed. By starting from scratch with a new, cloud-based platform, we are able to offer customers something truly different. With greater agility and responsiveness, we can build products that adapt to our customer’s lives, making them better off.”