Recognise receives restricted license from PRA/FCA

By Megha Bhattacharya

Recognise, the wholly-owned subsidiary of the City of London Group has received authorisation with restriction (AwR) from the PRA/FCA. The banking license from the PRA/FCA aims to address the service app for SMEs and enable Recognise to meet mobilisation conditions that will lead to the removal of the deposit restriction.

Phil Jenks, Chairman of Recognise said, “We know that 2020 has been overwhelmingly tough for SMEs so we are delighted that Recognise is now in a position to give the support that SMEs need to survive, grow and play their part in the recovery of the economy. Receiving AwR shows the quality of what we have delivered as a business thus far, the excellent plan we have in place, and the fantastic team we have built to do this.”

“As a new entrant in the UK SME banking market with no legacy book and the latest technology installed, Recognise is strongly placed to deliver on its relationship-based model and differentiated business plan. We have the experience and expertise at our disposal and believe we can play a major role in helping the UK small business sector get back on its feet.”

Recently, Recognise selected ClearBank as its banking partner in a bid to boost its banking service levels with the addition of transparency and faster transaction processing for the SMEs. Recognise, subject to the granting of a banking license, will be targeting the COVID-19-affected and the financially stressed UK SME sector.

Michael Goldstein, Group CEO said, “This represents a major milestone for the Group in delivering the strategy set out in early 2018. UK entrepreneurs will play a key role in creating and supporting UK economic growth, and to do so they need a banking sector that is aligned to their needs and way of thinking.”