Private bank Scoban will embark on a £40 million capital raising after receiving confirmation that it is set to receive its banking licence from the PRA.
Scoban, headed by ex-Adam & Co chair Ray Entwistle (pictured right), will be the first new start up bank to receive a licence offering full, traditional, banking services under the mobilisation process which was put in place in April of last year following the introduction of new regulatory bodies.
Granting the licence is subject to agreed capital requirements being met and the new bank opening its doors within a 12 month period. The Scoban board do not anticipate that this will be an issue as they are aiming to open their doors to customers in the late summer in Edinburgh and London.
It is Entwistle's intention for Scoban to be known as 'an institution which places the emphasis on providing the highest quality of service rather than just a faceless operation looking to sell products'.
'We will develop a very close relationship with our clients and their families so that they feel that the bank belongs to them. We will, genuinely, know our clients and provide them with a decision-making process which facilitates a speedy and efficient response to their needs.
'The interest we have received from over 200 investors has been extremely positive. We are in advanced discussions with major cornerstone investors, to raise sufficient capital to meet a strong early demand from potential clients.'
Graeme Hartop, managing director, who previously led Scottish Widows Bank, added: 'There is still a dislocation in the banking market place, as evidenced almost every day in the press, and this causes worry and some distress to clients. We are told regularly that stability, continuity of personnel and intelligent, speedy decisions are the key points in a client relationship, and we will provide this high quality of service.
'We will open our doors later this year in Edinburgh and London with a very experienced team of bankers, whilst at the same time employing a number of young people to be trained as bankers for the future.'
The management team is looking to raise a further £30-40 million from private shareholders, alongside a number of larger 'cornerstone' investors, over the coming months. This follows the £5 million worth of offers to subscribe for its shares it received in July 2012 and £1.4 million from the group’s initial capital raising.
'It is our ambition to be the most well respected private bank in 10 years' time. We are aiming to be profitable towards the end of year three,' Entwistle told Wealth Manager.