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New bank increases lending to small businesses by 21% in a quarter

POSTED: 27th September 2010
IN: Newsroom
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Aldermore, the new British bank, has increased the funding being provided to small businesses by 21% in the last quarter (Q2 2010) to £302 million.

The bank has also increased deposits from savers by 12% to £304m in Q2.

Aldermore was the first of the new wave of post credit crunch banks to be launched in the UK. Aldermore's lending activity is focused on small and medium sized businesses.

Comments Phillip Monks Aldermore CEO: "It is a great result and we really seem to be building a lot of momentum. It is an especially strong performance as we have been careful to ensure that we are lending only to credit worthy and robust SMEs."

"We have also studiously avoided taking on more in deposits than we can sensibly put to work."

"Even with those restraints we are growing at the kind of pace that we feel really vindicates our proposition which is to provide savers and borrowers with straightforward, transparent and fairly priced products."

Aldermore explains that much of its success in attracting new business, both from SMEs looking for funding and from savers looking for a competitive interest rate, has been driven by word of mouth.

Phillip Monks explains they have undertaken their expansion with minimal advertising.

Says Phillip: "That says to me that there is huge pent up demand from SMEs for funding to help them expand."

"Similarly there is a huge pool of consumers out there who feel that the range of savings products they are offered have too many strings attached, are too opaque or just offer a poor interest rate."

"But I have worked in banking for a long time and although we know we are delivering great growth now we are going to make sure we don't get complacent. Banks always seem to make the mistake of taking their customers for granted."

Aldermore says that the key to its savings strategy is simply to offer consistently competitive rates. All their fixed rate bonds and ISAs have featured in the Top 10 of the appropriate Moneyfacts Best Buy tables throughout the year. Existing customers are offered either the same or higher rates than those available to new customers.

Aldermore says that it is following the same principles as it rolls out its mortgage offering which is developing a strong following amongst professional financial advisers across the country.

As part of the expansion of its SME lending operations Aldermore opened a new office in Reading on August 16th.

Aldermore already has eight offices across the UK in Glasgow, Manchester, Cheshire (Wilmslow), West Yorkshire (Cleckheaton), Birmingham, Peterborough, Oxford (Abingdon) and Maidstone.

**Ends**

Journalists requiring further information should contact:

Phillip Monks
Chief Executive
Aldermore
Tel: 0161 238 5000
Mobile: 09810 585350

Tom Yazdi or Sarah Forsey
Mattison Public Relations
Tel: 020 7645 3636
Mobile: 07708 020857

For further information about Aldermore, our financial backers and our PR contacts, please review our Notes to Editors page. 

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