Real estate lender Ashman wins banking licence
Real estate lender Ashman has become the first new entrant this year to be awarded a banking licence.
The company is focused on lending to SMEs in the commercial real estate sector, which it says remains underserved by established and “challenger” banks. Ashman said half of SMEs in this space have reported being unable to access finance, while 84% are frustrated by slow decision-making and inflexible credit offerings.
Ashman aims to become the first new bank to focus on sustainability, and plans to launch a product range that is priced to incentivise sustainable development and will provide SMEs access to the expertise they need to become more sustainable. Two-thirds of SMEs polled by Ashman said that they want to be more sustainable but lack expertise or finance to make the necessary changes.
Real estate lender Ashman has become the first new entrant this year to be awarded a banking licence.
The company is focused on lending to SMEs in the commercial real estate sector, which it says remains underserved by established and “challenger” banks. Ashman said half of SMEs in this space have reported being unable to access finance, while 84% are frustrated by slow decision-making and inflexible credit offerings.
Ashman aims to become the first new bank to focus on sustainability, and plans to launch a product range that is priced to incentivise sustainable development and will provide SMEs access to the expertise they need to become more sustainable. Two-thirds of SMEs polled by Ashman said that they want to be more sustainable but lack expertise or finance to make the necessary changes.
The criteria will be wide-ranging but will include assessments of the impact in energy, water, materials, waste, and health and wellbeing. Ashman expects to launch these products towards the end of 2022.
The company was founded by Ashkin Mittal and Manhad Narula with the ambition of transforming the banking experience for property SMEs, which they see as a £90bn opportunity.
It will lend on deals from £100,000 to £5m and will offer both conventional and unique sustainability-linked lending products with preferential pricing for borrowers meeting sustainable criteria.
Chief executive James Leach, formerly global chief operating officer of Maple Financial Group, said: “We are building a bank that will sustainably finance the future by providing finance and guidance to what we believe remains a radically underserved market.
“Addressing this need is critical to achieving net zero in the UK, while at the same time giving savers the returns they need in times of rising inflation.”
He added: “We believe continual innovation is key to providing our SME customers not only with the funds but the crucial know-how to support them in delivering tangible sustainable processes.”
“If the UK government is to realise its net-zero ambitions, the commercial property sector must be a key focus – and we want to be the bank to help investors, developers and the government in achieving this.”
The bank is led by a senior team drawn from across some of the biggest banks including Barclays, HSBC, RBS and Monzo.
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