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Victoria Raffe @ "How to Start a New Bank" Seminar
The document outlines the landscape for starting a new bank, discussing various forms such as overseas entrants and neo banks. It also highlights regulatory and capital challenges, emphasizing the importance of support from authorities like the PRA and FCA during the application process. Key issues faced by new banks include funding, business model viability, and operational capabilities.
Victoria Raffe @ "How to Start a New Bank" Seminar
- 1. AGILITI: HOW TOSTART A NEW BANK Victoria Raffé
- 2. The Stars areAligned Political will Economic conditions Regulatory support Technical infrastructure Funding Customer mobility?
- 3. Different Shapes andSizes 2012 4 Overseas Subs 1 Overseas Branch 2013 3 Overseas Subs 1 Overseas Branch 1 UK Standalone Bank 2014 1 Overseas Sub 3 Overseas Branches 2 UK Standalone Banks New banks take many forms: Overseas entrants New start ups Passported branches License acquisition Divestments License extensions Specialist services “neo banks” Firms on the starting blocks: Pre-application – 20 Application assessment – 4 Mobilisation – 2 Source: FCA 5/15
- 4. What’s stopping you? Source:CMA Updated Issues Statement – Retail Banking. May 2015 Regulation? Authorisation Capital AML Regulatory “chill” Intrinsic advantages? Funding Branches IT Payment Systems Strategic advantages? Intermediaries Tying/bundling Info. asymmetry
- 5. Spotlight on Authorisations(Option B) Pre-application Application Period Mobilisation Firm in lead PRA/FCA Support: - Pre-app meeting - Challenge meeting PRA/FCA assessment Firm: - Responds to Qs - Can develop build PRA/FCA Assessment Firm completes operational capabilities and funding Common Problems Business model Growth assumptions Timeframes Conduct Raising capital IT build-outs Hiring staff Capital and ownership IT build and test Outsourcing 012345678910111213141516 012345678910111213141516 012345678910111213141516 I dea A pply L icense G o
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- 7. AGILITI: HOW TOSTART A NEW BANK Victoria Raffé