Bank of London (clearing bank)

The Bank of London
Bank of London, The
IndustryFinancial Services
FounderAnthony Watson
Headquarters
100 Bishopsgate City of London London
Key people

The Bank of London is a British clearing, correspondent and wholesale bank operating in the United Kingdom, the United States and Europe.[1] The bank launched on 30 November 2021 and in doing so became the UK's sixth clearing bank.[2][3][4]

History

The bank was founded by Anthony Watson.[2][5] In 2021, Harvey Schwartz was appointed as Group Chairperson and Non-executive Director.[6]

The executive team spent four years prior to the bank's launch creating proprietary technology which allowed them to enter the market with a $1.1 billion valuation. It became the first pre-revenue bank to achieve 'unicorn' status. The bank had raised $120 million in funding within weeks of opening for business. Its funding within its first month put it within the UK's top 10 most valuable fintech firms. In December 2021, it was in talks with three additional investment firms to raise additional funding.[7]

The bank uses cloud-based core banking technology and a software as a service (SAAS) delivery model.[8] The bank's goals are to take on established banks in the market for clearing and settlement, deliver global banking transactions for the corporate market, and to provide SAAS to assist companies in embedding payments into their products.[9]

In June 2022 the bank announced it was to open an office in Belfast,[10] in order to capitalize on Belfast's high concentration of fintech employment.[11] The office opened on 17 August 2022, with the Economic Minister of Northern Ireland, Gordon Lyons, visiting on the opening day.[12]

In August 2022 the bank announced it would be creating a technology hub in Charlotte, North Carolina. It has signed an 11-year lease for 40,000 square feet (3,716 m2) in Uptown Charlotte in 101 Independence Center to house 350 staff. The bank chose Charlotte for its talent pool and ranking as the second-largest banking city in the US behind New York City.[13][14][15]

In February 2023, the bank secured an additional $40 million as an extension to its Series C funding. Investors of this round were Mangrove Capital Partners, 14W Venture Capital, and ForgeLight Investment Funds.[16]

On 5 September 2024, HMRC petitioned to wind up the bank's parent holding company The Bank of London Group Holdings Limited.[17] However, on 9 September 2024, the bank stated that it had since paid all its taxes and the HMRC petition was the result of an administrative error on the part of Bank of London.[18]

On 30 September 2024, in a boardroom clear-out, the Bank of London said Lord Mandelson, Wade Davis and Anthony Watson, the group's founder, had all stepped down as directors. The bank’s chairman, Carlyle Group chief executive Harvey Schwartz, will also leave.[19] Anthony Watson was replaced as chief executive by Stephen Bell, a former Ulster Bank executive, on 3 September 2024.[19][20]

See also

References

  1. ^ "Inside the world of clearing banks: Is the Bank of London worth the 250 year wait?". CityAM. 11 January 2022. Retrieved 11 January 2022.
  2. ^ a b Hosking, Patrick. "'Unicorn' Bank of London a game changer". ISSN 0140-0460. Retrieved 13 January 2022.
  3. ^ Venkataramakrishnan, Siddharth (30 November 2021). "UK clearing bank set to launch with $1bn valuation". Financial Times. Retrieved 13 January 2022.
  4. ^ "Bank of London launches with big ambitions as the UK's sixth clearing bank - The TRADE". www.thetradenews.com. Retrieved 13 January 2022.
  5. ^ "Britain's first gay banking chief executive wants to shake up finance". Deccan Herald. 14 December 2021. Retrieved 17 January 2022.
  6. ^ Clarke, Paul. "Former Goldman Sachs exec Schwartz to chair new clearing bank". www.fnlondon.com. Retrieved 17 January 2022.
  7. ^ Bray, Wesley (1 December 2021). "Bank of London launches with big ambitions as the UK's sixth clearing bank". The Trade. Retrieved 17 October 2022.
  8. ^ "What Will London's Place Be in the Future of Global Clearing?". 13 July 2022. Retrieved 17 October 2022.
  9. ^ Bray, Wesley (1 December 2021). "Bank of London launches with big ambitions as the UK's sixth clearing bank". The Trade. Retrieved 17 October 2022.
  10. ^ Khairnar, Shruti (21 June 2022). "The Bank of London invests in Belfast and creates over 200 new jobs". Fintech Futures. Retrieved 17 October 2022.
  11. ^ Isaacs, Amelia (20 June 2022). "Bank of London invests millions in new Belfast centre". Altfi. Retrieved 18 October 2022.
  12. ^ McAleer, Ryan (17 August 2022). "Bank of London opens new Belfast fintech base at Soloist Building". The Irish News. Retrieved 17 October 2022.
  13. ^ Lang, Hannah (8 August 2022). "A new British bank is bringing 350 jobs to Charlotte. It's already actively hiring". Charlotte Observer. Retrieved 15 September 2022.
  14. ^ France, Elise (8 August 2022). "Bank of London to establish tech hub in uptown Charlotte, pledging 350 jobs". Charlotte Business Journal. Retrieved 17 October 2022.
  15. ^ "THE BANK OF LONDON ANNOUNCES A MULTIMILLION DOLLAR INVESTMENT IN CHARLOTTE AND THE CREATION OF 350 NEW JOBS". Cision PR Newswire. 8 August 2022. Retrieved 17 October 2022.
  16. ^ "The Bank of London raises $40m, bringing total valuation to $1.1b". Retrieved 12 May 2023.
  17. ^ "The Bank Of London Group Holdings Limited - Caseboard". Caseboard Limited. Retrieved 7 September 2024.
  18. ^ "Bank of London resolves tax payment glitch, raises funds". Reuters. 9 September 2024. Retrieved 10 September 2024.
  19. ^ a b Field, Matthew (30 October 2024). "Lord Mandelson leads exodus at bank founded by Labour party donor". The Telegraph. ISSN 0307-1235. Retrieved 1 November 2024.
  20. ^ "Anthony Watson CBE transitions to non-executive director of the firm's holding company". The Bank of London. Retrieved 7 September 2024.