UK challenger SilverRock lands banking licence with restrictions from PRA following £50m raise
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”.
SilverRock secures banking authorisation with restrictions
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)”.
In development since 2022, SilverRock will first aim to provide ‘funding as a service’ with forward flow financing for non-bank and specialist lenders and building societies.
The firm says that forward flow agreements mean it will “commit to purchasing loans or assets regularly from its lending partners” in order to ensure “a reliable and continuous source of funding for lenders whilst diversifying the bank’s own investment portfolio”.
This scope seeks to service its ambition of becoming “the UK’s premier specialist in forward flow financing and portfolio acquisitions”, it says on its website.
The company’s website also suggests savings solutions will arrive in “early 2025”.
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.”
