A Manchester firm aimed at building a regional SME lending bank for the 海角视频 is to receive a large investment from Estonia's largest capital provider.
Challenger bank B-North is set to benefit from a £4.455m investment from LHV Group when it receives its licence from the 海角视频 Prudential Regulatory Authority.
B-North said the commitment from the major Estonian banking and financial services company marks an "important step" in its ‘Series A’ fundraise.
The investment from LHV adds to B-North’s growing list of high-profile backers, including Greater Manchester Combined Authority and Channel 4 Ventures, as well as a series of successful crowdfunding rounds, securing investment from members of the public.
LHV Group is the largest domestic financial group and capital provider in Estonia, with its banking services used by 269,000 clients.
Jonathan Thompson, co-Founder and CEO of B-North, said: “We are delighted to welcome LHV as one of our lead investors.
"It is great to have the opportunity to work alongside a business that shares our belief in the importance of backing growing enterprises - and one that has a strong track record for doing so."
The investment announcement comes as B-North accelerates towards securing its banking licence, and completion of a £20m ‘Series A’ fundraise.
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The firm aims to disrupt the 海角视频’s £150bn SME lending market by establishing the first "truly regional" lending bank in 150 years.
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Through its network of regional ‘lending pods’ combined with a state-of-the-art cloud-based banking system, B-North aims to deliver loans to business ten times faster than the industry standard.
The first of B-North's pods are expected to open in Manchester later in 2021.
Mr Thompson added: "LHV's commitment will form part of the £20m capital raise we need to secure before being granted our banking licence.
"This investment from LHV is a significant boost to our capital raise and shows real momentum and investor appetite for our vision for business lending in the 海角视频 and is the latest step in our journey from B-North to Bank North.”