Given the anti-capitalist protests springing up around the world, you'd think that financial executives would prefer to keep a low profile. Yet last week a new British bank quietly opened, promising £250m in new loans for struggling businesses.
Shawbrook is, in fact, one of a number of new banks set up since the financial crisis. By positioning themselves as a breath of fresh air, unencumbered by toxic debts and other "legacy" problems, Shawbrook and the other recent arrivals, including Metro Bank and Aldermore, hope to exploit the anger that has been directed towards the bigger players.
Shawbrook chief executive Owen Woodley insists that this is "the opposite of a weird time" to be launching. "Given what's happened in the marketplace in the last three years, there are very significant opportunities for what we would describe as a more traditional banking model." Woodley acknowledges that £250m "isn't going to sort out UK plc" but, he says, any boost to lending is welcome.
Keen to put plenty of clear blue water between itself and the established players, Shawbrook's head office in Brentwood – best-known for being the epicentre of ITV2 show The Only Way Is Essex. So are we now going to see a surge in lending to tanning salons, nightclubs, Botox clinics and boutiques? Woodley refuses to rise to the bait. After disclosing that "my daughter is a fan of the programme," he says: "The reality is that we will be operating as a truly national business."
As well as lending to small businesses, Shawbrook will offer loans to individuals for things like home improvements, plus a range of savings accounts. However, one of the big challenges the new entrants face is that while many people are severely hacked off with the big banks, they don't leave them. It's still true that we are more likely to get divorced than change our bank.
