Bevan Money has submitted its application for a banking licence. The business plans to provide mortgages, fuelled by retail deposits and designed in detail to help key public sector workers onto the housing ladder.
The start-up says too many are denied the security, wealth creation and wellbeing of homeownership.
Bevan has reached this point without seeking external seed capital and currently carries no debt, a rarity for start-up banks at this late stage of the process.
Bevan’s core vision is to put the positive power of home ownership in the hands of key public sector workers, in pursuit of a stronger, fairer society for all. It believes the ‘one size fits all’ approach of the large banks inadequately meets the specific needs of so many key workers amongst the 5.74 million people in the public sector. It plans to become a bank raising retail deposits to fund its highly focused mortgage lending criteria. Bevan will distribute mortgages exclusively through the intermediary channel, adding valuable product diversity and choice to brokers and helping them to convert more applications into completions.
Mel Lane, CEO at Bevan Money, said: “It’s very unusual for an aspiring bank to get this far without carrying a lot of debt. There really aren’t many opportunities for investors to get involved with a business at this late stage of the process and in such a strong financial position.
“We’ve managed to come this far without seeking external investment because we’ve built a small team of experienced and dedicated individuals who believe in the concept of building a bank with a unique and valuable social purpose.
“Our key public sector workers provide a great service to this country, and it’s time they received the respect and appreciation they so richly deserve. We’re quick to call them heroes, but in the real world they’re more often overlooked than rewarded and this new bank is needed to support public sector workers now more than ever before.
“Home ownership is the bedrock of most peoples’ working and family lives. Yet so many workers at the sharp edge of public service struggle to get on the housing ladder. The problem is that most lenders treat public sector workers like any other salaried applicants, with no consideration given to their strong security of employment, additional shift and overtime income, professional qualifications, experience and reliable future pensions. Bevan’s products and underwriting will take full account of the strengths of this large group of underserved and aspiring homeowners.
”We are now seeking investment to help us take this process to the next stage and continue to build a proposition that we believe will make a genuine difference to the lives of so many of our public sector key workers. It’s a ground floor opportunity for investors committed to improving society ”
Colin Snowdon, who is advising the board, added: “It’s rare to find a management team who can cover all the bank application bases, without the input of paid for third party advice. It’s equally unusual to come across a new bank proposition the team believes in so passionately that they’re willing to commit their time, energy and expertise with no immediate reward. This is exactly what Mel has achieved with Bevan. She comes from a family with a strong background in public service and designed Bevan to reflect that personal experience
“The bank’s foundations will be built on mortgages secured on “bricks and mortar” homes for key public sector workers, underpinned by their vocational drive, secure income and future progression. Bevan’s lending criteria will fully reflect the detail of their career prospects. It will be a lender adding real value to the lives of so many key workers, the mortgage market, and the banking community.”
