Recognise Bank, a small and medium enterprises (SMEs) lender and savings provider has received an additional £25m from shareholder PV27.
The bank offers business loans, commercial mortgages, bridging loans, buy-to-let loans along with personal and business savings accounts.
“Recognise has shown that a bank embracing cutting-edge technology and a more personal approach can attract small firms in their thousands looking for a better deal,” said Jean Murphy, CEO at Recognise Bank.
Based in London, the fintech will use the capital from PV27, an investment branch of Parasol International, for its commercial lending and developing new SME products.
Founded in 2017 by Murphy, it gained its full banking licence in September 2021 and to date has raised £96m in funding.
Ruth Parasol, board member, Recognise Bank, said: “The UK SME banking sector is ripe for change because it is dominated by incumbent banks saddled with ageing technology and an outdated approach to customer service and innovation.”
The digital SME lender is regulated by the Financial Conduct Authority (FCA). It has already provided more than £112m in commercial lending and £117m in business savings accounts according to the firm.
Fellow digital lender LHV UK this week was accepted onto the FCA’s money laundering registry, allowing it to offer loans to SMEs.