The challenger bank offers secured mortgages for SMEs owners as well as for commercial and residential property investors. Clients will also have access to a business deposit account.
The bank entered its mobilization phase in April and said it expected to launch its services later in 2017. In October 2016, Acorn Financial Partners (AFP) submitted a banking licence application to the UK’s Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). On authorisation, AFP became Redwood Bank.
Redwood’s main focus will initially be to consolidate its local position. The bank is wholly-owned by Redwood Financial Partners, in which Warrington Borough Council has a 33% stake. (Warrington is a town located between Liverpool and Manchester.) The council’s executive board has approved an investment of GBP 30 million in Redwood as part of the bank’s capital funding.
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