Masthaven Bank eyes shakeup with retail licence

Growth-Emerging-New-Plant-General-700x450.jpg
Masthaven Bank has been given a retail banking licence by the Prudential Regulation Authority and the Financial Conduct Authority.

The Masthaven Finance arm says it wants to disrupt the market by letting savings and mortgage customers build their own products.

Masthaven Bank’s savings and mortgage customers will be able to determine maturity dates and interest rates through an online fixed-interest savings range.

Economic secretary to the Treasury Harriett Baldwin says: “Incentivising new banks to come to market is a key part of the government’s drive to increase competition in banking.

“We want to ensure that the UK financial services sector remains the best and most diverse in the world.

“It is great to see Masthaven successfully taking the leap from specialist mortgage lender to a new retail bank focused on digital services – I look forward to seeing how this transforms its offering for UK customers.”

Masthaven Bank managing director Jon Hall says: “In a world of ever increasing personalisation, many people want to take more control of their money and make it work harder for them.

“We’re determined to buck the ‘one size fits all’ approach to banking by helping retail customers play a bigger role in tailoring products to best suit their needs.”

Masthaven will also give share options to its staff.

The new bank will be majority-owned by founder and majority shareholder Andrew Bloom, with the remaining ownership held by the Pears family and Masthaven’s employees.

Bloom says: “We want our employees to hold a stake in the business that we will be building together, because as a bank we’re only as good as the people we employ.

“Our new team combines great talent and experiences with a shared vision to change banking for the better, working with our customers to help give them greater control of their finances.”