Launch of banking subsidiary - Paragon Bank

RNS Number : 2775A

Paragon Group Of Companies PLC

18 February 2014

 



18 February 2014

THE PARAGON GROUP OF COMPANIES PLC

Launch of banking subsidiary - Paragon Bank

The Paragon Group of Companies PLC ("the Company") has today launched its banking subsidiary Paragon Bank PLC ("Paragon Bank") following authorisation by the Prudential Regulation Authority.

The Company has provided initial capital of £12.7 million to the Bank and will expect to provide additional capital over time to support growth. 

Paragon Bank, regulated by the Financial Conduct Authority and the Prudential Regulation Authority, is a wholly owned subsidiary of the Company. It is led by Managing Director, Richard Doe, previously Chief Executive of ING Direct UK, together with an experienced banking and consumer finance management team and Board of Directors.

Paragon Bank will offer savings and loan products, broadening competition and choice in the UK banking market.  Car finance lending through brokers and car dealers is launching today, followed by savings products which will be available online in the Spring.  Personal loans will be offered through intermediaries and will launch later in the year.  Other consumer finance and SME products will be developed in due course.

Nigel Terrington, Chief Executive, said: "Today's launch of Paragon Bank marks an exciting development for the Group and represents the third leg of the strategy, joining Paragon Mortgages, the buy-to-let lending business and Idem Capital, the debt purchase business.  The establishment of Paragon Bank facilitates a return to consumer finance lending, benefitting from the Group's heritage, expertise and scale as a low-cost specialist lender. 

"Paragon Bank will bring choice and customer focus to the UK banking market, by providing consumers with straightforward, competitive products that are transparent, easy to understand and manage.  Initially, Paragon Bank will focus on lending in sectors where Paragon has extensive experience and previous success, in markets which are displaying good growth opportunities.  Paragon Bank's aim is to establish itself as a trusted banking partner for its customers and business partners."

For further information, please contact:

Paragon

Nigel Terrington, Chief Executive

Tel: [phone]

Deborah Bateman, External Relations Director

Tel: [phone]

Fishburn

Paul Farrow

Tel: [phone]

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 5390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. Car Finance products are not currently regulated by the Prudential Regulation Authority or the Financial Conduct Authority.

 

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