Chaired by former Starling and Monzo co-founder Paul Rippon, real estate lending startup GB Bank has picked up an additional £28 million in funding and been awarded a restricted banking licence by UK regulators.
GB Bank has been founded to support property developers in undeserved regions of the UK, with an initial focus in the North East, Yorkshire and North West.
The startup, which will also offer fixed-rate consumer saving accounts, aims to lend £3 billion over five years and build a £1 billion plus balance sheet.
Founded by brother and sister Stephen and Emma Black and technology entrepreneur Stephen Lancaster, the bank's senior team is led by chair Paul Rippon, and CEO Sue Hayes, previously Aldermore Bank's group managing director - retail finance.
Rippon made headlines last year by quitting Monzo, ostensibly to reduce the "cognitive overload" and farm alpacas on his Norhtumberland estate. At the time, Rippon said he was leaving the bank he co-founded in 2015 "to go and enjoy life" and dedicate his time to his other business interest.
Speaking about his new role at GB Bank, Rippon states: “As the UK recovers from the pandemic it is becoming even more important that we improve the provision of finance to small businesses. GB Bank is perfectly positioned to better serve regional developers who will help Britain build more homes and spaces and drive economic prosperity for all. Obtaining our provisional banking licence is real testament to what the team has delivered so far, and I believe with our experience and expertise we are strongly placed to bring about real change to this market.”
The award of the restricted banking licence comes with a $28 million funding committment from the Teeside Pension Fund. This follows on from an initial £20 million injection from TPF in 2020.