Recognise Bank is to benefit from £8.7m in new capital following a new successful round of funding announced by the bank’s parent company, the City of London Group (CoLG).

The latest funds mean CoLG has so far raised almost £65m in investment as part its aim to create a new business bank for UK SMEs.

Recognise recently achieved £100m in lending, six months after receiving its full authorisation by the PRA in September 2021. Its personal savings accounts have attracted £95m in deposits so far, followed by the launch of its business savings accounts in April.

The commercial lander indicated that the new capital will be used to support continued business lending, as well as the creation of a new team to further accelerate the bank’s digital offering, including the creation of new products and fresh revenue streams.

“Recognise has already made its mark in the business banking sector by hitting the challenging lending target we set, proving there is demand amongst the UK’s SMEs for our mix of relationship banking, supported by cutting edge technology,” Recognise Bank CEO, Bryce Glover, commented.

“To receive this fresh investment from two of our keystone shareholders shows their continued support for Recognise and commitment to our strategy and vision. Investing in our digital capabilities will help us build a world-class business bank, for today and the future.”

Chairman of the CoLG, Phil Jenks, said: “We have consistently delivered on time and in line with our strategy to create a new bank for Britain’s growing businesses, firms that are the lifeblood of our economy, but are consistently ignored and let down by the mainstream banks.

“The latest investment from Ruth Parasol and Max Barney is an important moment for Recognise, because it means the bank can build on a foundation of £100m in lending and £95m in savings deposits to push its digital capability even further and create a Bank that perfectly blends speed, service and innovation.”

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