Fresh from getting the green light on its banking licence, private bank Scoban is planning a name change as the management team enters negotiations to partner with an investment house.
The news comes as the firm embarks on a £40 million capital raising and executive chairman Ray Entwistle (pictured right) looks to bring about a return to old-fashioned private banking.
The fledgling bank had initial plans to launch its own investment management capability and later considered acquiring boutiques, but Entwistle said he is now ‘open to discussions’ with potential partners who could become shareholders.
‘We still want to move forward on the wealth management side but with the right partners who could be very attractive to our clients – and they could be shareholders as well,’ he said.
‘We are in a strong negotiating position with a particular house, which we have great respect for.’
Scoban is set to become the first new bank to receive a full banking licence under the Prudential Regulatory Authority’s mobilisation process, subject to capital requirements and opening its doors within 12 months. This isn't a concern for the bank as it is aiming to launch in Edinburgh and London by late summer.
Scoban is looking to raise a further £30-40 million by the end of April. This could potentially come from private shareholders, alongside larger ‘cornerstone’ investors.
Around 208 private shareholders are already on board, some having backed the bank from inception three years ago. Entwistle hopes many shareholders will become clients.
Nonetheless, he acknowledges that with interest rates at record lows, ‘people have to be prepared to play the long and not the short game’.
He expects to be profitable by year three and has ambitions to be ‘the most well respected private bank in 10 years’ time’. There are no plans to float the business.
Entwistle says the bank will be renamed, with a decision expected by the end of April. As the 25-strong team sets about developing the infrastructure for the bank, he says the aim is to combine traditional service with investment in a strong technology platform, developed by Oracle.
‘We would like to think that in five years’ time, banking will be regarded as a profession once again and bankers can be trusted once again,’ he said.
‘It is not about selling the latest product, it is about looking after the client and their family. This is why we set up Scoban and so many people want to join us and become shareholders.’