Fred Done puts his money on Spectrum
A NORTH West financial company has secured a major investment from bookmaker and serial entrepreneur Fred Done.
Mr Done, who owns Warrington-based BetFred – the largest independent chain of betting shops in the country, is understood to have invested several million pounds in Chester-based Spectrum Financial Group.
Spectrum, founded two years ago by a number of experienced bankers, provides a Card One banking – which provides individuals with a managed banking service and affinity-based pre-paid MasterCard cards.
A huge growth market, Card One banking can help people with low incomes or with unorthodox personal circumstances to get a bank account. In addition they cannot run up big debts because there is no overdraft or credit facility with the accounts.
Mr Done is the lead investor in a “multi-million pound” equity and debt financing package.
As well as BetFred, Mr Done’s business empire includes Peninsula Business Services, an employment law advisory service – which is run by his younger brother Peter – Sports Tours International and a sizeable property portfolio.
The Sunday Times place the Dones at 86th in its 2009 Rich List with a joint fortune of £510m.
Adam Rigler, managing director of Spectrum Financial Group said: “Having Fred on board is great news, an investor with sound knowledge of business development is a real plus. The appetite for pre-paid debit cards and managed banking products in particular are showing exceptional growth.
“With this investment now in place we are perfectly positioned to deliver the required services and a ‘must have’ proposition to potential customers.”
Founded in 2007 the independently operated Spectrum Financial Group is a leading money card provider specialising in the pre-pay sector. Through Spectrum Card Services and Spectrum Payment Services the group is leading the market in pre-payment technology and affinity marketing innovation. The company has around 7,000 customers and employs 30 people.
Commenting on his investment Fred Done said: “This is a private investment for me, however I see great potential for the business within the gaming industry as well as to the wider consumer audience.
“I hope my knowledge and experience in developing a strong high street brand will be of benefit to Adam and his team.”
The Group’s Card One banking service is similar to a basic bank account, however the customer is unable to go overdrawn and there are no ‘bounced’ payment fees.
Provided by Spectrum Card Services, the Card One banking offers open-loop chip and pin pre-paid MasterCards that have been designed for distribution in a challenging consumer credit market.
Adam Rigler added: “The OFT recently highlighted the need for transparency in fee charging on bank accounts. This is exactly what our product provides.”
Card One banking offers a practical solution for the millions of adults in the UK that either don’t have a bank account or just have one of many basic bank accounts that only offer an ATM card.
Customers with Card One banking also have the added benefits of being able to use their pre-paid card anywhere in the world displaying the MasterCard logo.
