# Redwood secures banking licence from regulators Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-04-10 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: Redwood Bank receives banking licence approval from FCA and Meta Description: Redwood Bank, a UK SME Business bank, secures banking licence for launch in 2017. Warrington Borough Council invests in Redwood for economic growth. URL: https://financedigest.com/redwood-secures-banking-licence-from-regulatorshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/bus-atlas-p1-97-246-1736843957228-compressed.jpg) - Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) grant new banking licence to Redwood Bank - Warrington Borough Council acquires 33% shareholding in the new bank Redwood Bank, a new UK SME Business bank, has secured a banking licence following approval from the Financial Conduct Authority (“FCA”) and Prudential Regulation Authority (“PRA”).  Redwood will now enter its mobilisation phase and expects to launch to customers later in 2017. Redwood Bank is wholly owned by Redwood Financial Partners Ltd (“RFP”), a company  controlled by Jonathan and David Rowland, who are delighted to announce that Warrington Borough Council (“the council”) has acquired a 33% stake in RFP, the first time a borough council has made an investment of this type. The council’s [Executive board](https://www.financedigest.com/x-google-executive-to-join-numerous-board.html "x-Google executive to join Numerous board") has approved an investment of £30m in Redwood as part of Redwood’s capital funding. Redwood Bank will offer secured SME lending products to owner occupied businesses, as well as to experienced [commercial and residential property](https://www.financedigest.com/rouzbeh-pirouz-on-investing-in-commercial-property-as-the-uk-emerges-from-the-pandemic.html "Rouzbeh Pirouz on Investing in commercial property as the UK emerges from the pandemic") investors. It will also provide business deposit accounts. Following the council’s investment, prior to launch Redwood Bank will open a northern regional office in Warrington, which will spearhead the Bank’s [lending](https://www.financedigest.com/irish-central-bank-eases-strict-mortgage-lending-limits.html "Irish central bank eases strict mortgage-lending limits") to SMEs in the town as well as the bank’s Heartland region of the North West. This will be in addition to Redwood’s headquarters in Letchworth, from which a team of business development managers will provide a highly personalised, relationship-driven service, focusing on SMEs throughout its southern and eastern Heartland regions of Hertfordshire, Bedfordshire and Buckinghamshire. Jonathan Rowland, Co-Founder of Redwood Bank, said: “Securing a [banking licence](https://www.financedigest.com/barclays-gets-australian-banking-licence-in-expansion-push.html "Barclays gets Australian banking licence in expansion push") by the PRA and the FCA underlines the strength of our business model and the calibre of our experienced management team.  With the [opportunities being created](https://www.financedigest.com/tire-materials-market-to-create-an-incremental-opportunity-of-us-99-99-bn-by-the-end-of-2028-fmi.html "Tire Materials Market to create an incremental opportunity of US$ 99.99 Bn by the end of 2028 – FMI") by Brexit and the Financial Services sector’s rehabilitation, this is a great time to be entering the market.” “We extend a warm welcome to Warrington Borough Council as a new shareholder in Redwood.  It’s clear that the council shares our vision to create a robust, secure and profitable bank that is not only well placed to deliver strong returns but also to stimulate sustainable [economic growth](https://www.financedigest.com/oil-prices-hold-firm-amid-hopes-for-economic-growth.html "Oil prices hold firm amid hopes for economic growth") in Warrington and the surrounding area.  This is a unique Public-Private Partnership that heralds a [return to community banking](https://www.financedigest.com/swiss-bank-ubp-returns-to-chinese-markets.html "Swiss bank UBP returns to Chinese markets") in the UK.” Gary Wilkinson, Co-Founder and Chief [Executive of Redwood Bank](https://www.financedigest.com/u-s-bank-executives-raise-concerns-over-inflation.html "U.S. bank executives raise concerns over inflation"), added: “In addition to securing the banking licence, considerable progress has been made in building Redwood’s infrastructure.  We have established the new bank’s headquarters in Letchworth, Hertfordshire and have been building a talented and experienced management team.  We are [well on track to open to customers later this year](https://www.financedigest.com/why-well-look-back-on-2022-as-a-defining-year-for-fintech.html "Why we’ll look back on 2022 as a defining year for fintech") with a proposition built on competitive rates, superior service and straightforward products.” Warrington Borough Council’s executive board member for corporate finance, Cllr Russ Bowden, said: “This is a really important deal for Warrington and part of our commitment to innovative financial approaches which support growth and [sustainability](https://www.financedigest.com/sustainable-finance-the-wave-of-the-future.html "Sustainable Finance: The Wave of the Future") in the borough.” “We [see our stake in the company as an investment in our future](https://www.financedigest.com/hyperkalaemia-treatment-market-sale-will-apprehended-to-see-impressive-growth-in-near-future.html "Hyperkalaemia Treatment Market Sale Will Apprehended To See Impressive Growth In Near Future"). It’s about investing in our local economy, helping businesses thrive and generating [income which will enable us to protect](https://www.financedigest.com/how-to-choose-the-best-income-protection-insurance.html "How to Choose the Best Income Protection Insurance") council services. I’m delighted that the company has now been granted its banking licence and we can [move forward towards](https://www.financedigest.com/the-orange-essential-oil-market-to-move-towards-constructive-advancements.html "The Orange Essential Oil Market To Move Towards Constructive Advancements") its launch.” Redwood will be [announcing a number of senior Board-level management appointments](https://www.financedigest.com/impact-com-announces-appointment-of-ning-wang-to-board-of-directors.html "impact.com Announces Appointment of Ning Wang to Board of Directors") over the coming weeks as it gears up for launch. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---