Paragon launches new banking subsidiary
SOLIHULL-based home credit and mortgages group Paragon has today launched its new banking subsidiary, Paragon Bank PLC. The move – predicted by TheBusinessDesk.com last year – follows authorisation by the Prudential Regulation Authority.
The company has provided initial capital of £12.7m to the bank and expects to add to this over time to support growth.
Paragon Bank, which is regulated by the Financial Conduct Authority and the Prudential Regulation Authority, will be a wholly owned subsidiary of the company and based in Solihull.
It is led by managing director, Richard Doe, previously chief executive of ING Direct UK, together with an experienced banking and consumer finance management team and board of directors.
The bank will offer savings and loan products, broadening competition and choice in the UK banking market. Car finance lending through brokers and car dealers is also being launched today, followed by savings products which will be available online in the spring. Personal loans will be offered through intermediaries and will launch later in the year. Other consumer finance and SME products will be developed in due course.
Nigel Terrington, Paragon chief executive, said: “Today’s launch of Paragon Bank marks an exciting development for the group and represents the third leg of the strategy, joining Paragon Mortgages, the buy-to-let lending business and Idem Capital, the debt purchase business. The establishment of Paragon Bank facilitates a return to consumer finance lending, benefitting from the Group’s heritage, expertise and scale as a low-cost specialist lender.
“Paragon Bank will bring choice and customer focus to the UK banking market, by providing consumers with straightforward, competitive products that are transparent, easy to understand and manage. Initially, Paragon Bank will focus on lending in sectors where Paragon has extensive experience and previous success, in markets which are displaying good growth opportunities.”
He said the aim was to see the bank established as a trusted financial institution to both customers and business partners.
