Commercial lender applies for banking licence

Commercial lender applies for banking licence




Private & Commercial Finance (PCF) has revealed that it has submitted a formal application for a banking licence.

The lender offers both hire purchase and finance lease facilities to consumers as well as businesses and has helped over 60,000 customers over the past 20 years.

The news comes as PCF revealed its adjusted profits before tax were up 67% to £3.5m, while it had also seen a growth in business finance lending of 24%.

Scott Maybury, Chief Executive of PCF, said it was pleased to have delivered a strong set of results as it prepared for the operational and governance requirements of becoming a bank.

"We are focused on the key strategic objective of obtaining a banking licence. 

“In conjunction with the submission of our application we have provided the regulator with a mobilisation plan which assumes the granting of the licence, subject to mobilisation, by the end of 2016. 

“Up to that point and during that mobilisation phase the quality of our portfolio, the prudence of our existing business model and the availability of adequate facility headroom will enable us to continue to deliver further organic portfolio growth and profitability gains."

PCF submitted its application for a banking licence on 13th May 2016 as David G Anthony, Chairman of PCF, confirmed that it was currently being evaluated for completeness and expected a response imminently. 

“Once the licence is granted, we will enter a mobilisation phase when the Group will put in place the operational infrastructure, risk and governance framework and balance sheet which we outlined in our application. 

“Some of the mobilisation work can be done in advance of the licence being granted and, in particular, work has already commenced on the technology platform. 

“This mobilisation phase is a detailed project plan covering a period up to summer 2017. 

“We will provide regular updates on our progress as we move towards achieving this key strategic objective.”

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