DF Capital granted banking licence
The challenger bank plans to launch a range of personal savings accounts.
Distribution Finance Capital Holdings plc, a niche lender providing working capital solutions to dealers and manufacturers across the UK, has been granted a banking licence from the Prudential Regulation Authority (PRA).
The company resubmitted its banking licence application in August 2019 and the PRA has now authorised its subsidiary Distribution Finance Capital Limited as a bank.
The company didn’t use the optional “mobilisation” (authorised with a business restriction) process and as a result, it will be able to launch a range of personal savings products in due course.
DF Capital says these products will have a straightforward, online account opening process, supported by UK-based savings experts.
Distribution Finance Capital Ltd, the group company that holds the banking licence, will be renamed DF Capital Bank Ltd, subject to regulatory approval.
Carl D’Ammassa, DF Capital chief executive officer, says: “This is an exciting time for DF Capital, as the company can now unlock its full potential as a regulated bank.
“We have been bank-ready for some time so are pleased with this news and feel well placed to look beyond the near-term challenges of Covid-19 to support our dealer and manufacturer customers in the knowledge that we will have an additional, and sustainable, funding source in place. I believe we have all the tools in our armoury to progress our growth plans, whilst remaining a strong and well-capitalised bank lender.”
Savings deposits in DF Capital Bank Ltd will be fully guaranteed under the Financial Services Compensation Scheme (FSCS) up to £85,000 per person per institution.
DF Capital was launched in June 2016 and began lending in mid-2017. By the end of 2017, the company had £30m of assets and was listed on the LSEG’s AIM market in May 2019.
Loans of more than £750 million have been originated to date.