Firm applies for banking licence to create dozens of new North East jobs

A Newcastle company aims to bring its workforce up to 60 in the North East after applying for a banking licence.

GBB, which is based in Newcastle, aims to increase the supply of property development finance to the UK, starting in the North.

The firm will offer secured property development loans of between £1m and £5m, with 90 per cent of lending supporting regional property developers and SME construction companies.

CEO of GBB, Steve Deutsch, said: “The UK’s undersupply of housing offers a clear market opportunity.

“We know that 66 per cent of property developers are borrowing now, with 90 per cent intending to borrow in the next three years.

“Our ambition is to become an engine of economic growth for regional SME developers by providing bespoke secured finance underpinned by long-term relationships that build trust and generate repeat business.

“This will be funded by highly competitive fixed term savings products, aimed at customers looking to deposit between £5k-£100k of savings.

“We want to be a reliable source of income for savers in the easiest possible way.

“Our lack of legacy systems or branches and a model that is supported by modern technology results in a low-cost income ratio that benefits customers and investors alike.”

“Right now, we have a laser focus on raising the finance to complete the bank build and provide the initial regulatory capital required for the launch.

“This, with a move into new premises and further expansion of the team means we’ll be ready to launch in 2021.”