BestAdvice fires the questions at Mel Lane, CEO of Bevan Money
BestAdvice (BA): Who are Bevan Money?
Mel Lane (ML): Bevan Money is going to be a different sort of bank, one focused on supporting the millions of public sector workers we have in the UK.
I think if you ask the general public, most people would agree that public sector workers play an incredible role in our country. Healthcare workers, civil servants, the military, teachers – these are people who are the foundation of our society.
But when it comes to banking, public sector workers get a pretty raw deal. Too many banks take a very prescriptive approach to what they do, and public sector workers – who are likely to have slightly more complex or niche circumstances and arrangements than those in the private sector – get a raw deal as a result.
This is particularly important when it comes to the mortgage market. Significant numbers of public sector workers feel priced out of home ownership, not just because of the rate at which house prices have risen in recent years but because of the approach that high street banks take towards borrowers in their position.
It doesn’t have to be like this, however. At Bevan Money we will be focusing on the needs of those public sector workers, designing products and processes specifically to support them and help build a fairer society in the process.
BA: You recently announced that progress has been made in Bevan Money becoming a bank. How long do you think you still have to wait?
ML: We are hoping to formally launch in late 2023/early 2024. In October we officially completed the pre-application stage of the Bank of England’s New Bank Start-up Unit, which is the longest stage of the authorisation process, so that’s a hugely significant milestone.
Now that this stage has been completed, we are able to submit a formal application to the regulators. It’s really exciting to see that we are now so close to being able to launch into the mortgage market as a full bank and make a real difference to public sector borrowers.
As would be expected, we’re seeking equity investment so if this is of interest, please get in touch.
BA: What has been happening in the background while you go through the authorisation process?
ML: At Bevan Money we are really keen to be able to make an impact from day one of gaining formal authorisation. So, we’ve been spending our time making sure that we have the right people and processes in place so that as soon as we are able to lend, we can do so with confidence.
It’s a long journey becoming a bank – there is no shortage of hurdles to clear, and that’s no bad thing. After all, would-be banks should have to prove that they can deliver on their promises and are set up properly.
But it also provides applicants with an opportunity to lay the foundations for how they want to operate in future, how they want to make a difference to the market. I believe we’ve put that time to good use, honing our brand and our message.
BA: How does Bevan Money plan to distribute its mortgages?
ML: We are fully committed to the intermediary market and our mortgage products will only be available through brokers.
There’s no question that brokers play an enormous role in the mortgage market already, and I believe that is only likely to become more pronounced in the years ahead. The expertise that brokers offer their clients, particularly those with more complex circumstances, is invaluable.
We know from our conversations with brokers that their public sector clients have long felt frustrated by the lack of options open to them, the lack of understanding from the traditional lenders towards their circumstances. I have no doubt Bevan Money can and will address that, and I’m excited to build those relationships with brokers which will mean we can support those public sector clients with their borrowing needs.