London firm granted bank licence amid plans to provide £1bn credit for SMEs

A London digital bank challenger has been granted a full UK bank licence as it aims to provide £1bn of credit to small businesses.

Cashplus has been granted the licence by the Prudential Regulation Authority with immediate effect, and is planning to use its new capabilities to serve up £1bn of credit to UK small businesses to support the UK’s post-Covid recovery.

The new bank can also now use part of its £500m of customer deposits for lending.

The company generated approximately £50m in revenues in 2020 and has recorded nine consecutive years of operating profit since 2012.

Rich Wagner, founder and CEO, commented: “Cashplus has reached this milestone at the moment when UK small businesses need us most.

“When we started out 15 years ago, we got first-hand experience of the pain that small businesses face when dealing with big banks.

“These same small companies will be crucial to the UK’s economic recovery and they will need a bank that takes them seriously, providing what they need to be successful.

“So, while big banks are slamming the door shut, we’ll be welcoming customers, opening up lending and delivering enhanced products to support them through the challenging months ahead.”