UK-based Redwood Bank has launched digital banking services after obtaining a banking license for business in the UK; Redwood Bank is the first bank with a 100% cloud-based infrastructure and will offer SME mortgages for business owners and professional landlords as well as a 35-day business savings account; Redwood Bank is wholly-owned by Redwood Financial Partners Ltd. which is controlled primarily by Warrington Borough Council with a 33% ownership stake; the newly launched bank is covered by the UK's Financial Services Compensation Scheme (FSCS) which protects customers' eligible deposits of up to a total of GBP85,000 ($109,846). Source
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CB Insights reports on two of Europe's top markets for fintech investment, the UK and Germany; the UK is reporting significant early-stage investment in personal banking platforms and insurtech with insurtech also a top investment in Germany; year-to-date, European fintech companies have raised approximately $2.6 billion with early stage fintech financing in the UK at $202 million and Germany reporting financing of $83 million. Source
Zopa's Jaidev Janardana spoke at AltFi Europe this week on the firm's plans for building a bank; he provides insight in a blog post; the bank will build on Zopa's successful track record in lending with new savings accounts and credit product but the firm will not offer a current account; the UK has been dominant in challenger bank development and the Zopa bank will provide UK customers with another alternative banking option which is currently in high demand in the region; the above chart highlights the competitive advantages Zopa has in the market. Source