New banking group raises £50 million

A new banking group in the UK, known as NBNK Investments, is looking to attack the UK banking arena and build up a business representing a market share of between four and 6%. It is hoped that the new operation, which so far has no representation on the high street, will be able to build up a network of between 400 and 600 branches across the UK and attack the existing banking system.

There is no doubt that the new company has a very impressive board of directors which includes Lord Levene, Sir David Walker, Lord Brennan, Lord McFall, Lord Forsyth and Charles McCreevy. This new operation has been rumoured for some time although there were sceptics who believed it would never get off the ground due to the ever growing influence of the major banking companies in the UK. However, with a target of up to 600 branches in the UK, there is no doubt that the company will be looking to pick up operations from Lloyds Bank and Royal Bank of Scotland.

Investors appear to have welcomed the new set up and the £50 million of funding raised will at least give the company the opportunity to bid for various groups of bank branches which are likely to come onto the market. Whether the company will be successful or not remains to be seen!