Ex-Metro Bank Boss to Launch Specialist Lender
Now more than ever, borrowers and financial service providers alike are exploring the possibilities alternative lending brings to the table. As businesses and the public in general continue to shun conventional banks and lenders for more convenient and accessible alternatives, those with an eye for opportunity are refusing to allow this unique shift to pass them by.
Jason Oakley, former managing director of commercial banking and mortgages at Metro Bank, is preparing to launch a new specialist lending service as an alternative to mainstream banks and conventional lending channels. Owned and operated by City of London Group (COLG), the new lender is scheduled to begin operating by the end of 2019 and is awaiting the issue of its banking licence.
Former MD of commercial banking at Alliance & Leicester/ Santander, Bryce Glover, has joined forces with Mr Oakley on the venture – the pair having invested £50,000 and £400,000 respectively in the new business.
At the same time, Credit Asset Management Limited (CAML), has taken its first steps towards the establishment of a new business line known as Property & Funding Solutions (PFS), which is being created to provide commercial development and bridging finance, along with a secured lending for current clients of CAML.
“I am delighted that our banking licence application will shortly be under way,” commented chief executive officer Michael Goldstein.
“We are also in the process of establishing our new business line in property bridging funding under the existing CAML business and our re-launch of the Milton Holmes equity release business may be achieved more quickly than originally envisaged,”
“Overall, the future is looking bright with a strong leadership team in place to deliver on all our strategic objectives.”
While optimism within the group remains high, external critics have suggested that entering into the bridging loans market as it exists today may prove difficult. The reason being that on the back of unprecedented demand for such products among commercial and private borrowers alike, the market has become extremely congested with alternative and independent lenders of every shape and size. It’s been argued that entering such a crowded market could represent an inadvisable decision – unless the lender in question has something specific and unique to offer in terms of value.
Given the on-going performance and financial stability of COLG, it’s entirely possible that the new bridging business will have every capacity to bring its own unique value proposition to the table for commercial borrowers across the UK.
Delays and difficulties associated with conventional mortgages and business loans are driving borrowers the way of alternative lenders in growing numbers. With alternative options available, borrowers are no longer willing to jump through hoops and accept extraordinary delays, simply to get their hands on the finances they need.
The market may be crowded, but in terms of overall demand and relevance, there’s technically never been a better time to explore the unique possibilities presented by intelligent financial service provision.