While many new banks have been successful in becoming authorised through the New Bank Start-up Unit, there is a significant difference between the number of firms that are interested in becoming a bank, those that follow the process of submitting an application; and those that subsequently gain authorisation.
There are a number of reasons for why this is the case:
- some firms realise that they can achieve their desired business model without needing to set up a bank. There are significant costs to setting up a bank, so firms need to be assured that this is the right option for them;
- firms’ proposals may fall short of the standards required to become a bank; they may be unclear or disorganised. This highlights the importance of the pre-application stage for firms as our feedback can help to shape and further develop their thinking. The pre-application stage is an optional stage where firms engage with us early on in order to develop their propositions and prepare their applications to set up a new bank. More detail on the pre-application stage can be found in the New bank authorisation process section; and,
- firms may lose their financial backers such that they do not have the financial resources that they need to operate as a bank. This can lead to some applicants withdrawing from the process while they seek fresh investment.
The table below lists the firms we have authorised as banks since 2013 (as at end-March 2021).
Total number of authorised banks since 2013
List of new UK ‘start-up’ banks authorised by the PRA
List of new banks authorised as either a branch or a subsidiary of an overseas bank by the PRA (a)
Paragon Bank Plc
Hampden & Co Plc
Charter Court Financial Services
Tandem Bank Ltd (d)
First Trust Global Bank (c)
Masthaven Bank Limited
BFC Exchange Ltd
Private and Commercial Finance Group Holdings Ltd
Redwood Bank Ltd
Civilised Bank (c)
Chetwood Financial Services Limited
Zopa Financial Services Limited
Ursa Finance (c)
Oxbury FS Plc
Castle Trust Capital Plc
Distribution Finance Capital Limited
Monument Corporation Limited
Advanced Payment Solutions
Axis Bank UK Limited
Union Bank of India (UK) Limited
FCMB (UK Limited)
UBA Capital (Europe Limited) (c)
Industrial and Commercial Bank of China Limited
U.S Bank National Association (c)
China Construction Bank Corporation
Habib AG Zurich UK Plc
China Merchants Bank Co Limited
Bank of Communications Co Limited
State Bank of India
Sumitomo Mitsui Corporation London Branch
Agricultural Bank of China Limited London Branch
Baroda UK Operations Limited
Shanghai Pudong Development Bank Co, Ltd
Kookmin Bank Co Ltd London Branch
UBA Capital (Europe Limited)
Triodos UK (Ltd)
RCI Services UK Limited
China CITIC Bank Corporation Limited
CitiBank UK Limited
Intesa Sanpaolo Private (Swiss Morval S.A)
- (a) Please note this list does not include former EEA Branches now authorised as Third Country Branches in the UK.
- (b) This figure is made up of 26 new UK deposit-takers, 24 overseas branches/subsidiaries deposit-takers, and 4 banks authorised for ring-fencing purposes (not included in this table).
- (c) This firm is no longer authorised.
- (d) In January 2018, Tandem Money Limited acquired the entity previously named Harrods Bank Limited (‘HBL’) and changed HBL’s name to ‘Tandem Bank Limited’. The entity now known as Tandem Bank Limited has therefore been authorised since prior to 2010. However we include reference to Tandem Bank Limited in the list above because Tandem Money Limited was granted authorisation as a start-up bank in 2015. Tandem Money Limited no longer holds a deposit-taking permission.