Start-up organisation NBNK Investments announced recently it has pans to become a major player High Street as the company has found investors to buy shares in order to raise £50 million in funding.
The newly formed banking institution, conceived and implemented by two heavyweights from the London finance sector, is prepared to create a formidable presence in Britain since it began trading on the London Stock Exchange’s AIM.
The new bank has said that the funds it generates from its shareholders will go towards the purchase of branches from banks already in existence; one such deal it is currently pursuing is the 600 branch offering that Lloyds will be implementing over the next few years.
The Lloyds sell off comes in the wake of a European Commission order to do so as a punitive measure in regards to the state funds, measuring in the billions, that the bank received, during the height of the banking crisis.
In addition to the Lloyds branches, NBNK is also rumoured to be considering a further 75 branches put up on the auction block from Northern Rock, another bank that had been nationalised by the credit crisis.
News of a new competitor joining the fray for market share in the UK’s high street comes after last month’s inclusion of Metro Bank into that same sphere, becoming the newest lender to break a barrier that stoof for over 100 years. Additionally, Virgin Money made headlines for its recent acquisition of a banking license as well, setting the stage for a revolution in the banking industry in the UK.
In the meantime, NBNK has commented that its financial focus will be on banking services that are both traditional and personalised. Bord members for the new bank will include such luminaries as Sir David Walker and Lord McFall, former head of the Treasury Committee.
Insurance marketer Lloyd’s of London’s chairman, Peter Levene, will serve as chairman for the new corporation.
Lord Levene commented on the recent developments, saying that NBNK’s admission to AIM completes the company’s first stage plans; the next step, he said, was to begin establishing dialogues with asset sellers that dovetail with NBNK’s profile in regards to acquisitions.
In another similarity to newcomer Metro Bank, NBNK will devote itself to returning to what it views as core banking values in addition to offering longer opening hours for its clientele.