Challenger bank

Challenger banks are small, recently-created retail banks in the United Kingdom that compete with the longer-established banks in the country,[1][2] sometimes by specialising in areas underserved by the "big four" banks (Barclays, HSBC, Lloyds Banking Group, and Royal Bank of Scotland Group).[3]. As well as new entrants to the market, some challenger banks were created following divestment from larger banking groups (see TSB Bank (United Kingdom)) or wind-down of a failed large bank (see Northern Rock).

The banks distinguish themselves from the historic banks by modern information technology practices, such as online-only operations, that avoid the costs and complexities of traditional banking.[4] In order to be defined as a "bank", the company must be authorised to accept retail deposit by the UK financial regulator the Prudential Regulation Authority (PRA).[5]

List of challenger banks

This list contains notable companies that have received PRA authorisations to operate as banks in the UK:

References

  1. ↑ "Challenger bank". OxfordDictionaries.com. Oxford University Press. 2017. Retrieved 18 August 2017.
  2. ↑ Wallace, Tim (29 December 2015). "Are challenger banks the saviours of British banking?". The Daily Telegraph. Retrieved 18 August 2017.
  3. ↑ Burd, Tristan (20 March 2015). "Are Challenger Banks Disrupting Banking?". Market Mogul. Retrieved 18 August 2017.
  4. ↑ Flinders, Karl (21 Jan 2015). "Six challenger banks using IT to shake up UK retail banking". Computer Weekly. Retrieved 18 August 2017.
  5. ↑ "New Bank Start-Up Unit | Bank of England". www.bankofengland.co.uk. Retrieved 2018-07-17.

See also

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