Yesterday saw the launch of a new challenger bank after the Prudential Regulation Authority (PRA)  granted a banking licence to Charter Court Financial Services (CCFS).

Charter Savings Bank will launch in early 2015 as a dedicated proposition from CCFS who also house Precise Mortgages and Exact Mortgages Experts who will benefit from a more diversified funding model which aims to build a sustainable and competitive business for the future.

Managing Director of Precise Mortgages, Alan Cleary, believes this is good news for their intermediary partners and borrowers.

“This is good news for our intermediary partners and our borrowers as being part of a bank gives us access to further funding sources,” he said.  

“…which will help us to continue with our strategy of helping those borrowers underserved by high street lenders?  Precise Mortgages strategy remains unchanged by this announcement.”

Charter Savings Bank joins a small group of challenger brands who have recently moved into retail banking and will offer three core products when they launch which include; Easy Access, 95 Day Notice and 1 to 5 year Fixed Rate Bonds.

The bank aims to act as real alternative to traditional banks as they aim to make a straightforward, transparent solution for a discerning customer base who is struggling to achieve their financial goals.

Chief Executive Officer of CCFS, Ian Lonergan, sees the development of a retail banking proposition as a logical extension for their business.

“Being granted this licence by the PRA demonstrates the strength of our offering and the ambitious plans we have to champion savers and borrowers and help them realise their financial goals,” he stated.

CCFS have made a number of senior board appointments which sees Phillip Jenkins become Chair and former Leeds Building Society CEO, Ian Ward named as Vice Chair.

The bank will be covered by the Financial Services Compensation Scheme (FSCS) which guarantees eligible customers’ deposits up to a total of £85,000.