A new business bank is to be founded by Jonathan Rowland and Gary Wilkinson, offering commercial mortgages and business deposit accounts to SMEs across Hertfordshire, Bedfordshire and Buckinghamshire.

Rowland and Wilkinson submitted a banking license application to Financial Conduct Authority and the Prudential Regulation Authority today, and hopes to receive its license in early 2017. The bank will be named Redwood Bank and is expected to attract £50 million worth of investment from a number of high profile investors, including Wildcat Capital Management, Falcon Edge founder Rick Gerson and David ‘Tiger’ Williams of Williams Trading.

AFP’s majority shareholder will the company owned by David and John Rowland, Acorn Global Investments Ltd, who have extensive experience and a successful track record in the banking and finance sectors. Subject to regulatory approval Jonathan Rowland will be the Redwood Bank’s chairman – Jonathan was the Chief Executive of Kaupthing Bank between 2009 ad 2013 and played a leading role in the restructuring and subsequent recapitalisation of the bank into Banque Havilland S.A. and Banque Havilland (Monaco) SAM.

“This is an ideal time to apply for a full banking licence; the major banks have not returned to anywhere near their pre-crisis business lending levels and the uncertainty caused by Brexit is likely to worsen the situation. At the same time, SMEs have shown a strong appetite for new market entrants offering competitive rates and superior customer service. Against this backdrop, we have a compelling opportunity to build a secure, robust and profitable bank”, Jonathan said.

The senior management team of Redwood will be led by Gary Wilkinson as Chief Executive, again subject to regulatory approval. Gary has over 30 years’ experience within financial services, and is the former Chief Executive of Cambridge & Counties Bank, which provides lending and deposit products for SMEs.

Miranda Wadham on 17/10/2016