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Challenger bank

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The first high street bank to launch in the UK in over 150 years. In 2019 it lost £800m (40%) of its company value as the result of an accounting error in which its commercial loans were misclassified. An investigation by the PRA resulted in the bank being fined £5.38m by the PRA in December 2021. In
105:, set up their New Bank Start-up Unit which guides firms through the process from an expression of interest, through the application process, to 'authorisation with restrictions' if appropriate, and finally to those restrictions being lifted and the firm being granted a full banking license. 87:, was extremely expensive and time-consuming. This led to a very small number of banks dominating the UK market—the so-called Big Four—with virtually no competition at all. Indeed, when Metro Bank received their license in 2010, it was the first new high street bank for 100 years. 1204: 547: 628: 197:
terminated the ability to "passport" a European banking licence, necessitating applying for a British banking licence to continue which N26 decided would be too complex and expensive.
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In the wake of the 2008 financial crisis, it was decided to open the market up to new banks. After a period of consultation, the regulation to enable this formed part of the
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A UK financial technology company specialising in accounts for small and medium-sized businesses, offering FSCS protected bank accounts provided by ClearBank.
923: 822: 215: 655: 1055: 980: 953: 867: 1134: 575: 415: 738: 793: 603: 1803: 680: 1515: 48:). As well as new entrants to the market, some challenger banks were created following divestment from larger banking groups ( 526: 1822: 1082: 83:
Prior to changes in the regulatory landscape in the UK financial services industry, setting up a new bank, with a full UK
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that compete directly with the longer-established banks in the UK, sometimes by specialising in areas underserved by the
1695: 464: 629:"A new approach to financial regulation: transferring consumer credit regulation to the Financial Conduct Authority" 1419: 1108: 931: 1532: 1557: 1222: 364: 1837: 1678: 895: 1027: 1562: 167: 109: 91: 1796: 1634: 1363: 1727: 29: 1745: 1607: 1424: 120:
This list contains companies that received authorisation from the PRA to operate as banks in the UK.
49: 1182: 278: 999: 848: 681:"A review of requirements for firms entering into or expanding in the banking sector: one year on" 425: 333: 1498: 1351: 429: 420: 452: 1827: 1789: 1567: 1520: 1272: 516: 548:"As watchdogs approve CYBG and Virgin Money's merger, should the big five banks be worried?" 1683: 1309: 1295: 68: 53: 41: 8: 1777: 1582: 1429: 771: 493: 325: 710: 1708: 1592: 1462: 304: 291: 95: 1701: 1577: 1278: 522: 460: 308: 1135:"Bank of London debuts as first new UK clearing bank in 250 years with global plans" 1109:"Inside the world of clearing banks: Is the Bank of London worth the 250 year wait?" 1672: 1665: 1658: 1652: 1612: 1373: 1304: 1060: 847:
Wiggins, Kaye; Venkataramakrishnan, Siddharth; Morris, Stephen (4 November 2021).
1735: 1622: 1617: 1510: 1383: 1345: 1246: 1056:"Britain just got a new digital bank and it's raising tens of millions of pounds" 1004: 580: 552: 395: 316: 193:
A German app-based bank which ceased to do business in the UK in April 2020. The
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The former Harrods Bank, founded in 1893, which was acquired in January 2018 by
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operations, that avoid the costs and complexities of traditional banking.
1397: 1368: 1319: 1284: 711:"Atom is the first of the new UK challenger banks out the gate — sort of" 660:
Harvard Law School Forum on Corporate Governance and Financial Regulation
25: 739:"Monzo, a UK digital-only challenger bank, granted full banking license" 518:
The End of the Experiment?: From Competition to the Foundational Economy
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Disruptive Technologies for Business Development and Strategic Advantage
1714: 1597: 1547: 872: 743: 715: 253: 94:, which came into force on 1 April 2013. A summary and assessment from 1765: 767:"First high street bank 100 years, but will Metro Bank get a licence?" 656:"Financial Services Act 2012: A New UK Financial Regulatory Framework" 239:
Provides savings, business finance, property finance, personal loans.
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To assist new firms to enter the banking market, the PRA, part of the
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The banks distinguish themselves from the historic banks by modern
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status upon debut, after achieving a valuation of over $ 1.1B.
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set up in over 250 years, it is also the first bank to attain
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In July 2014, the PRA, together with their co-regulators, the
576:"Six challenger banks using IT to shake up UK retail banking" 150: 252:
Starling Bank was founded by former Allied Irish Banks COO,
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This United Kingdom bank or insurance-related article is a
1467: 1258: 37: 185: 489:"Are challenger banks the saviours of British banking?" 794:"Metro Bank shares crash after loans blunder revealed" 896:"German bank N26 blames Brexit as it pulls out of UK" 336:(NAB) in February 2016, when it was called CYBG plc. 112:
published a review of the requirements, one year on.
849:"Metro Bank receives takeover approach from Carlyle" 346: 1214:Commercial and retail banks in the United Kingdom 1083:"Four fintech trends to watch in 2022 and beyond" 1000:"UK 'challenger' banks plan listings worth £10bn" 1814: 998:Goff, Sharlene; Arnold, Martin (18 March 2014). 332:, and Virgin Money. It was originally set up by 1833:United Kingdom financial services company stubs 145:App-based bank offering savings and mortgages. 210:Provides business and property loans to SMEs. 1797: 1198: 1053: 893: 647: 162:has 9.3 million customers as of June, 2024. 521:. Manchester University Press. p. 92. 482: 480: 328:, which in turn trades as Clydesdale Bank, 115: 1804: 1790: 1205: 1191: 997: 708: 1025: 894:Williams-Grut, Oscar (11 February 2020). 394:as of 16 February 2021, by the 176:November 2021, it entered talks with the 1054:Williams-Grut, Oscar (1 December 2015). 921: 786: 621: 573: 477: 486: 450: 56:) or wind-down of a failed large bank ( 1815: 1019: 865: 764: 601: 514: 1186: 978: 653: 545: 223:Providing 'fixed for life' long term 16:Small recently created UK retail bank 1760: 1161:"CYBG improves bid for Virgin Money" 1026:Moskvitch, Katia (7 February 2019). 820: 392:List of authorised UK start-up banks 180:concerning a possible takeover bid. 673: 370:List of banks in the United Kingdom 13: 979:Jones, Rupert (7 September 2023). 821:Cohn, Carolyn (22 December 2021). 736: 574:Flinders, Karl (21 January 2015). 273:startup Tandem Money and renamed. 158:One of the early app-based banks, 14: 1849: 954:"New banks authorised since 2013" 765:Wallop, Harry (1 February 2010). 487:Wallace, Tim (29 December 2015). 451:Zhuplev, Anatoly V., ed. (2018). 385: 195:UK's exit from the European Union 1764: 1420:National Savings and Investments 866:Dillet, Romain (16 March 2016). 604:"Metro bank granted FSA licence" 349: 1153: 1127: 1101: 1075: 1047: 991: 972: 946: 922:Scuffham, Matt (9 March 2015). 915: 887: 859: 840: 814: 758: 730: 702: 688:Prudential Regulation Authority 546:Moore, James (4 October 2018). 709:O'Hear, Steve (6 April 2016). 602:Wallop, Harry (5 March 2010). 595: 567: 539: 508: 444: 408: 1: 1679:Cambridge & Counties Bank 1223:Banking in the United Kingdom 654:Noked, Noam (24 March 2013). 401: 365:Banking in the United Kingdom 1776:. You can help Knowledge by 324:A holding company that owns 24:are small, recently created 7: 1823:Banks of the United Kingdom 459:. IGI Global. p. 106. 342: 303:. The second new principal 110:Financial Conduct Authority 92:Financial Services Act 2012 10: 1854: 1759: 78: 1746:UK Government Investments 1723: 1653:Arbuthnot Latham & Co 1643: 1476: 1438: 1425:UK Government Investments 1412: 1382: 1328: 1293: 1256: 1229: 1220: 116:List of challenger banks 98:can be accessed online. 1364:Holt's Military Banking 1139:InternationalInvestment 515:Bowman, Andrew (2014). 426:Oxford University Press 334:National Australia Bank 1499:Allied Irish Bank (GB) 1352:Royal Bank of Scotland 428:. 2017. Archived from 421:OxfordDictionaries.com 1521:The Co-operative Bank 1684:Close Brothers Group 1310:Birmingham Midshires 1296:Lloyds Banking Group 69:financial technology 54:Lloyds Banking Group 42:Lloyds Banking Group 1838:European bank stubs 1744:Partially owned by 1709:Rothschild & Co 1430:UK Asset Resolution 772:The Daily Telegraph 494:The Daily Telegraph 326:Clydesdale Bank plc 256:, in January 2014. 71:practices, such as 1593:Standard Chartered 1413:Wholly state-owned 1089:. 31 December 2021 934:on 26 January 2016 453:"Challenger Banks" 292:The Bank of London 96:Harvard Law School 1785: 1784: 1754: 1753: 1702:Kleinwort Hambros 1673:C. Hoare & Co 1644:Other commercial 1578:Secure Trust Bank 1279:HSBC Private Bank 1141:. 1 December 2021 1115:. 11 January 2022 960:. Bank of England 802:. 23 January 2019 635:. 16 January 2014 528:978-0-7190-9633-4 432:on 18 August 2017 416:"Challenger bank" 340: 339: 1845: 1806: 1799: 1792: 1768: 1761: 1666:Butterfield Bank 1659:Bank and Clients 1613:Unity Trust Bank 1583:Sainsbury's Bank 1440:Challenger banks 1374:Isle of Man Bank 1358:Messrs. Drummond 1346:Coutts & Co. 1305:Bank of Scotland 1207: 1200: 1193: 1184: 1183: 1177: 1176: 1174: 1172: 1157: 1151: 1150: 1148: 1146: 1131: 1125: 1124: 1122: 1120: 1105: 1099: 1098: 1096: 1094: 1079: 1073: 1072: 1070: 1068: 1061:Business Insider 1051: 1045: 1044: 1042: 1040: 1023: 1017: 1016: 1014: 1012: 995: 989: 988: 976: 970: 969: 967: 965: 950: 944: 943: 941: 939: 930:. 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Finance 886: 858: 839: 813: 785: 757: 729: 701: 672: 646: 620: 594: 566: 538: 527: 507: 476: 465: 443: 406: 405: 403: 400: 399: 398: 387: 386:External links 384: 383: 382: 377: 372: 367: 361: 360: 344: 341: 338: 337: 330:Yorkshire Bank 322: 319: 313: 312: 301:universal bank 297: 294: 288: 287: 284: 281: 275: 274: 267: 264: 258: 257: 250: 247: 241: 240: 237: 234: 232:Shawbrook Bank 228: 227: 221: 218: 212: 211: 208: 205: 199: 198: 191: 188: 182: 181: 173: 170: 164: 163: 156: 153: 147: 146: 143: 140: 134: 133: 130: 127: 117: 114: 80: 77: 15: 9: 6: 4: 3: 2: 1850: 1839: 1836: 1834: 1831: 1829: 1826: 1824: 1821: 1820: 1818: 1807: 1802: 1800: 1795: 1793: 1788: 1787: 1781: 1779: 1775: 1770: 1767: 1763: 1762: 1758: 1747: 1743: 1741: 1738:are shown in 1737: 1736:private banks 1733: 1729: 1726: 1725: 1722: 1716: 1713: 1711: 1710: 1706: 1704: 1703: 1699: 1697: 1694: 1692: 1691: 1690:Duncan Lawrie 1687: 1685: 1682: 1680: 1677: 1675: 1674: 1670: 1668: 1667: 1663: 1661: 1660: 1656: 1654: 1651: 1650: 1648: 1642: 1636: 1635:Wesleyan Bank 1633: 1629: 1626: 1624: 1621: 1620: 1619: 1616: 1614: 1611: 1609: 1606: 1604: 1601: 1599: 1596: 1594: 1591: 1589: 1586: 1584: 1581: 1579: 1576: 1574: 1573:Reliance Bank 1571: 1569: 1566: 1564: 1561: 1559: 1556: 1554: 1553:Kent Reliance 1551: 1549: 1546: 1544: 1543:Handelsbanken 1541: 1539: 1536: 1534: 1531: 1527: 1524: 1523: 1522: 1519: 1517: 1514: 1512: 1509: 1505: 1502: 1500: 1497: 1496: 1495: 1492: 1490: 1487: 1485: 1484:Al Rayan Bank 1482: 1481: 1479: 1475: 1469: 1466: 1464: 1461: 1459: 1458:Starling Bank 1456: 1454: 1451: 1449: 1446: 1445: 1443: 1441: 1437: 1431: 1428: 1426: 1423: 1421: 1418: 1417: 1415: 1411: 1405: 1402: 1400: 1399: 1395: 1393: 1390: 1389: 1387: 1385: 1381: 1375: 1372: 1370: 1367: 1365: 1362: 1360: 1359: 1355: 1353: 1350: 1348: 1347: 1343: 1341: 1338: 1337: 1335: 1333: 1332: 1331:NatWest Group 1327: 1321: 1318: 1316: 1313: 1311: 1308: 1306: 1303: 1302: 1300: 1298: 1297: 1292: 1286: 1283: 1281: 1280: 1276: 1274: 1271: 1269: 1266: 1265: 1263: 1261: 1260: 1259:HSBC Holdings 1255: 1249: 1248: 1244: 1242: 1241:Barclays Bank 1239: 1238: 1236: 1234: 1233: 1228: 1224: 1219: 1215: 1208: 1203: 1201: 1196: 1194: 1189: 1188: 1185: 1167:. 3 June 2018 1166: 1162: 1156: 1140: 1136: 1130: 1114: 1110: 1104: 1088: 1084: 1078: 1063: 1062: 1057: 1050: 1035: 1034: 1029: 1022: 1007: 1006: 1001: 994: 986: 982: 975: 959: 955: 949: 933: 929: 925: 918: 903: 902: 897: 890: 875: 874: 869: 862: 854: 850: 843: 828: 824: 817: 801: 800: 795: 789: 774: 773: 768: 761: 746: 745: 740: 733: 718: 717: 712: 705: 689: 682: 676: 661: 657: 650: 634: 633:UK Government 630: 624: 609: 608:The Telegraph 605: 598: 583: 582: 577: 570: 555: 554: 549: 542: 534: 530: 524: 520: 519: 511: 496: 495: 490: 483: 481: 472: 468: 466:9781522541493 462: 458: 454: 447: 431: 427: 423: 422: 417: 411: 407: 397: 393: 390: 389: 381: 380:Payments bank 378: 376: 373: 371: 368: 366: 363: 362: 358: 347: 335: 331: 327: 323: 320: 318: 315: 314: 310: 306: 305:clearing bank 302: 298: 295: 293: 290: 289: 285: 282: 280: 277: 276: 272: 268: 265: 263: 260: 259: 255: 251: 248: 246: 245:Starling Bank 243: 242: 238: 235: 233: 230: 229: 226: 222: 219: 217: 214: 213: 209: 206: 204: 203:OakNorth Bank 201: 200: 196: 192: 189: 187: 184: 183: 179: 178:Carlyle Group 174: 171: 169: 166: 165: 161: 157: 154: 152: 149: 148: 144: 141: 139: 136: 135: 131: 128: 125: 124: 121: 113: 111: 106: 104: 99: 97: 93: 88: 86: 76: 74: 70: 65: 63: 62:Northern Rock 59: 55: 51: 47: 46:NatWest Group 43: 39: 35: 31: 27: 23: 19: 1828:Online banks 1778:expanding it 1771: 1756: 1739: 1731: 1707: 1700: 1688: 1671: 1664: 1657: 1618:Virgin Money 1603:Triodos Bank 1558:Kingdom Bank 1477:Other retail 1439: 1404:Santander UK 1396: 1356: 1344: 1329: 1294: 1285:M&S Bank 1277: 1273:HSBC UK Bank 1268:First Direct 1257: 1245: 1230: 1169:. 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Morgan 1646:and private 1533:Danske Bank 1463:Tandem Bank 1398:Cater Allen 1369:Ulster Bank 1320:Lloyds Bank 832:22 December 690:. July 2014 73:online-only 1817:Categories 1732:underlined 1715:Weatherbys 1598:Tesco Bank 1563:Metro Bank 1548:Hodge Bank 1145:18 January 1119:18 January 1093:18 January 907:19 January 873:TechCrunch 744:TechCrunch 716:TechCrunch 402:References 254:Anne Boden 168:Metro Bank 30:"big four" 1538:easyMoney 1489:Aldermore 1448:Atom Bank 500:18 August 436:18 August 225:mortgages 138:Atom Bank 1608:TSB Bank 1504:AIB (NI) 1232:Barclays 1171:13 March 1165:BBC News 1067:13 March 1039:13 March 1033:Wired UK 1011:12 March 938:13 March 879:13 March 806:22 March 778:12 March 722:12 March 587:13 March 559:12 March 343:See also 50:TSB Bank 34:Barclays 1740:italics 1568:Paragon 1340:NatWest 1315:Halifax 928:Reuters 827:Reuters 750:29 July 694:19 July 665:19 July 639:19 July 613:19 July 375:Neobank 309:unicorn 271:fintech 132:Status 79:History 32:banks ( 1392:Cahoot 1113:CityAM 525:  463:  262:Tandem 44:, and 1526:Smile 1516:Chase 1453:Monzo 684:(PDF) 321:1995 296:2020 283:2015 266:2015 249:2014 236:2011 207:2015 190:2016 172:2010 160:Monzo 155:2016 151:Monzo 142:2015 126:Bank 60:from 52:from 1774:stub 1734:and 1730:are 1468:Zopa 1173:2019 1147:2022 1121:2022 1095:2022 1069:2019 1041:2019 1013:2019 966:2023 940:2019 909:2022 881:2019 834:2021 808:2019 780:2019 752:2019 724:2019 696:2019 667:2019 641:2019 615:2019 589:2019 561:2019 523:ISBN 502:2017 461:ISBN 438:2017 279:Tide 38:HSBC 186:N26 64:). 1819:: 1163:. 1137:. 1111:. 1085:. 1058:. 1030:. 1002:. 983:. 956:. 926:. 898:. 870:. 851:. 825:. 796:. 769:. 741:. 713:. 686:. 658:. 631:. 606:. 578:. 550:. 491:. 479:^ 455:. 424:. 418:. 299:A 40:, 36:, 1805:e 1798:t 1791:v 1780:. 1206:e 1199:t 1192:v 1175:. 1149:. 1123:. 1097:. 1071:. 1043:. 1015:. 987:. 968:. 942:. 911:. 883:. 855:. 836:. 810:. 782:. 754:. 726:. 698:. 669:. 643:. 617:. 591:. 563:. 535:. 504:. 473:. 440:.

Index

retail banks
"big four"
Barclays
HSBC
Lloyds Banking Group
NatWest Group
TSB Bank
Lloyds Banking Group
Virgin Money
Northern Rock
financial technology
online-only
banking licence
Financial Services Act 2012
Harvard Law School
Bank of England
Financial Conduct Authority
Atom Bank
Monzo
Monzo
Metro Bank
Carlyle Group
N26
UK's exit from the European Union
OakNorth Bank
Perenna Bank Plc
mortgages
Shawbrook Bank
Starling Bank
Anne Boden

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