Challenger bank reveals reorganisation
Challenger bank Paragon has revealed a strategic reorganisation that it hopes will “accelerate its transformation into a diversified specialist banking institution”.
It expects the banking business to “be self-sustaining and consistently profitable” and no longer require substantial periodic capital injections from the group.
The Solihull-based business will change its name to Paragon Banking Group to reflect the changes it is making.
Paragon chief executive Nigel Terrington described the changes as “the logical next step in our transition to a more broadly based banking group”.
The group has has sold investments in Paragon Finance and other certain legacy origination companies to Paragon Bank, following PRA and FCA approval.
The move means all of the group’s material lending and operating activities, together with substantially all its loan portfolios, now sit below Paragon Bank within the Group structure. All of the group’s employees are now employed by Paragon Bank or one of its operating subsidiaries
Terrington added: “The new name and rebranding reflects the strategy and will deliver greater clarity for our customers, and utilises the strength of the Paragon brand across the business.
“This revised organisational structure and the financial efficiency from aligning the vast majority of the Group’s business lines under the Bank will help optimise funding and capital over time.”
