Cloud based business lender Redwood Bank opens its doors

With offices in Letchworth and Warrington, the UK's newest business bank will open its doors for business just four months after securing its banking licence.

Redwood Bank announced on Tuesday that it had completed its "mobilisation" phase and hit the ground running with a 35-day business saving account with a 0.45% AER variable.

The financial institution said its speed to market was due to the fact that it was the first business bank with a 100% cloud-based infrastructure, which it said improved both efficiency and security.

By virtue of the Warrington Borough Council's 33% stake in the bank, it has been approved for a £30m investment from the council's executive board that would make up a portion of the bank's capital funding.

Chief executive and co-founder of Redwood, Gary Wilkinson was set to oversee day-to-day operations at the bank, along with chairman David Buckley, formerly of Morgan Stanley and Goldman Sachs.

Wilkinson said, "As many traditional banks are hampered by poor lending practices from their past and their legacy systems, we are perfectly positioned to help British SMEs take advantage of property opportunities by offering a highly-tailored service for clients that is built around our very experienced regional managers."