Charter Court Financial Services Ltd (CCFS), the parent business of Precise Mortgage, is to launch a new challenger bank, Charter Savings Bank, in early 2015.
This follows the approval of its banking licence by the Prudential Regulation Authority (PRA).
The online and telephone based proposition, which will eschew a physical presence on the high street, will be a UK bank for UK savers. It is covered by the Financial Services Compensation Scheme (FSCS), the UK’s deposit protection scheme, which guarantees eligible customers’ deposits up to a total value of £85,000.
CCFS has made a number of senior board appointments to support the launch of the banking proposition and the future growth of the company. Philip Jenks becomes CCFS’ chair after a 40-year career in retail banking. Ian Ward, former CEO of Leeds Building Society has been appointed vice-chair and will be responsible for overseeing the savings proposition.
Tim Brooke, formerly a partner of PWC who has held senior positions at several retail banks, joins the board with specific responsibility for overseeing the bank’s risk functions. Ian Wilson joins as the bank’s chief risk officer.
Ian Lonergan, CEO of CCFS, will take overall control of running the new bank. Paul Whitlock, formerly director of savings at Shawbrook Bank, has been appointed director of savings at Charter Savings Bank and is the chief spokesperson on banking issues.
Lonergan said: “We see the development of a retail banking proposition as a logical extension for our business, enabling it to diversify into new markets and build a sustainable and competitive business model for the future.
“Being granted this licence by the PRA demonstrates the strength of our offering and the ambitious plans we have to champion savers and help them realise their financial goals.”
“We will bring competitive rates and excellent, reliable service to a customer base which has too often been taken for granted by high street banks,” said Whitlock.
“A significant number of savers are dissatisfied and feel unrewarded in today’s economic climate and we intend to provide new options that meet their needs
“It’s high time, in what has become a listless market, that straightforwardness and robust rates are re-introduced to the market. Charter Savings Bank aims to do just that.”
Kevin Mountford, head of banking at MoneySuperMarket, said: “The CCFS announcement that it has had its banking licence approved and is launching an online and telephone based banking proposition spells good news for consumers. Whilst we don’t know the specific product details yet, the launch will undoubtedly help create much needed competition in the savings market.
“Savers have really suffered throughout the financial crisis, and in particular since the introduction of Funding for Lending which led to a massive reduction in savings rates. I am hopeful that the introduction of a challenger brand such as this will help spark more competition within the industry and make way for more choice for consumers.
“Until this happens, however, savers need to do everything they can to help themselves maximise their money. Apathy is rarely rewarded, and those who have a savings account with the same provider for over 12 months will most likely be receiving a rate far lower than they could receive on the current leading products in the market. The majority of banks are not proactive when it comes to making sure people are on the best deal, so it pays to be savvy and not let them get away with it.”
