City of London Group (COLG) has revealed that it is to start the process of obtaining a banking licence and creating a business with the purpose of offering commercial, SME, bridging, and development finance.

COLG is recruiting a team under the leadership of Jason Oakley, former managing director of commercial banking and mortgages at Metro Bank and head of SME at Nat West and RBS,

He will be joined by Bryce Glover, former managing director of commercial banking at Alliance & Leicester/ Santander and an NED of Newcastle Building Society.

The objective is for a full banking licence to be obtained within two years.

Michael Goldstein, COLG’s CEO, said: “During the first six months of the financial year, the business of our leasing and loans platform, CAML, continued to progress with its ‘own book’ portfolio increasing from £13.8m to £14.1m in September.

“With the increased financial strength of the Group following the completion on 5 October of the acquisition of Milton Homes and the receipt of £3m net from the issue of additional shares, the Company is now well placed to develop and realise the potential of both its operating platforms.

“In addition, we have made good progress in delivering on the strategy set out in our recent Admission Document, ensuring that over the coming years COLG will have a strong, distinctive and value accretive business operating in three attractive market segments. I am delighted that our banking licence application will shortly be under way.

“We are also in the process of establishing our new business line in property bridging funding under the existing CAML business and our re-launch of the Milton Holmes equity release business may be achieved more quickly than originally envisaged. Overall, the future is looking bright with a strong leadership team in place to deliver on all our strategic objectives.”