UK’s Recognise Bank lands £25m investment amid leadership transition
Recognise Bank, a UK-based digital bank serving small and medium-sized enterprises (SMEs), has secured a £25 million investment while also undergoing a leadership transition.
Recognise Bank raises £25m amid a leadership transition
Provided by Parasol V27 – which has funded the bank since 2022 – the investment is aimed at supporting the bank’s focus on “business lending across multiple product sectors”, according to a statement.
In addition to the cash injection, the bank has announced several changes to its leadership team.
Phil Jenks stepped down as chairman at the end of last month, marking the end of his five-year tenure at Recognise Bank.
Jenks is to remain as an independent non-executive director until “no later than the end of the year”, with Steve Pateman succeeding him as chairman.
Pateman, currently a non-executive director at Recognise, is a seasoned banker, advisor and board director. He was previously CEO of another UK-based SME challenger bank, Shawbrook Bank, and held CEO roles at regional banks Hodge Bank and StreamBank. His experience also includes senior leadership roles at Santander UK and Royal Bank of Scotland/Natwest. He is also a non-executive director for alternative lender ThinCats and an independent non-executive director for Bank of Ireland.
Meanwhile, Jean Murphy, CEO of Recognise Bank for the past two years, will depart by the end of the year, to be succeeded by former Nomo Fintech CEO and CTO Simon Bateman.
Bateman brings more than 30 years of experience in financial services, having held roles at Recognise’s rivals, Aldermore Bank and Allica Bank, and also at Lloyds Banking Group.
Commenting on the outgoing pair’s contributions, incoming chairman Pateman remarked that “under Jean and Phil’s leadership,” the bank has surpassed “£300 million in lending” and attracted “£450 million in savings”.
Founded in 2017, Recognise Bank obtained its full banking license in September 2021 and offers an array of business loans to SMEs, including professional buy-to-let financing, commercial mortgages and bridging loans.
In 2023, it joined other UK lenders in urging the government to improve small business credit access through better data sharing in an open letter to then-Business Secretary Grant Shapps.
