UK’s first neobank for first-time buyers readies for launch

By Amelia Isaacs on Wednesday 23 March 2022

Alternative Lending

BOMADU (Bank of Mum and Dad United) is readying to launch in the UK to help young, first-time buyers.

UK’s first neobank for first-time buyers readies for launch
Image source: BOMADU.

The UK’s first neobank designed to help out young, first-time buyers is readying to launch.

BOMADU, which stands for the Bank of Mum and Dad United, is designed to help out the record number of young buyers who cannot turn to their parents for help.

The new neobank is helping bring a safe, fair banking solution to potential homeowners, it says, are facing the barrier of an initial home deposit.

It is particularly looking to bridge the equity wealth gap and ethnicity gap in homeownership – across England, white British households were more likely to own their own homes than all other ethnic minorities combined in 2020

BOMADU is a Barclays Eagle Labs startup that has also received backing from Fintech Wales, and sees itself as a viable alternative to government-backed schemes such as Shared Ownership.

It also stands apart from other startups looking to help new buyers, such as mortgage lender disruptor Proptech Generation Home, as it is specifically designed for those without additional support.

Founded and led by CEO Abi Elohim, BOMADU’s chair is former group head of capital at RBS and Tesco Bank Ian Tyler.

Tyler described BOMADU as a great example of a “people-driven business”.

“We recognise that only a very few fortunate people can realistically expect financial help from their parents when buying a home,” he said.

He acknowledged the difficulty young people face when trying to save, pay rent and deal with the rising cost of living.

“We are on a socially-driven mission to help millions of young first-time buyers fulfil their ownership dreams quickly and responsibly,” Tyler added.

The London-based digital bank has launched its first-ever crowdfunding campaign on Seedrs, and has so far raised more than £85k from 27 investors.

Sign up for our newsletters


Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.


Companies in this Article:

Barclays
RBS
Seedrs

More like this:

Exclusive: Tide scoops up Funding Options in its first acquisition

Editor's Pick

29 November 2022
Oliver Smith

The AltFi Awards 2022: Here are the winners!

Editor's Pick

2 December 2022
Oliver Smith

Zilch poised to axe 10 per cent of workforce

28 November 2022
John Reynolds

MarketFinance rebrands as Kriya

30 November 2022
Daniel Lanyon