By Oliver Smith on Tuesday 16 June 2020
The new business bank is being built by the City of London Group, ahead of a launch later this year.
A new digital bank for businesses, Recognise, has appointed ClearBank to develop its banking APIs ahead of its launch later in 2020.
Recognise, a subsidiary of the City of London Group, is currently building out its technology platform ahead of a launch planned for the third quarter of this year.
The startup applied for a banking licence at the end of 2019 and is hoping to have this granted by the end of 2020 according to its investor presentation.
“It is a pleasure to take forward this partnership with both ClearBank and Mambu, working to develop new technologies and frameworks that will improve the overall banking experience for SMEs in the UK,” said Recognise CEO and former managing director of commercial banking and mortgages at Metro Bank, Jason Oakley.
Recognise is planning on launching a range of lending products including working capital, buy-to-let, asset finance and bridging finance, with amounts up to £5m.
Once licenced the bank will also offer term deposits of up to five years for SMEs and retail consumers, similar to OakNorth’s offering.
However, Recognise will also face an increasingly challenging SME banking sector, with several digital rivals vying for small and medium-sized business customers, a wave of BCR cash boosting the likes of Starling and Tide, along with an economic recession making SMEs less likely to change their banking providers.