UK Challenger SilverRock Lands Banking Licence with Restrictions from PRA

London-based challenger SilverRock Bank has been granted a banking licence with restrictions by the Prudential Regulation Authority (PRA) and plans to start lending "later this year".

The regulatory approval follows the completion of a £50 million funding round, with SilverRock set to leverage the two together to mobilise its services and execute its phased market arrival, with the goal to secure a balance sheet of £3 billion by 2029.

The restrictions stipulated in the licence mean that the aggregate amount of deposits held by the firm at any time may not exceed £50,000.

On its website, the bank adds it is "progressing towards full bank authorisation (subject to regulatory approval)".

CEO Alan Jarman claims SilverRock is the first of its kind in the UK "to focus support on non-bank and other lenders", with the £250 billion market presenting "the potential for significant expansion as the sector responds to new and emerging customer needs".

"Our focus is on ensuring the borrowing needs of SMEs and consumers in non-standard credit markets can be met," he continues. "That approach will in turn support and facilitate innovation amongst lenders, enabling them to better respond to the challenges and opportunities in the UK market."

(Source: Fintech Futures)