Case Study: Cambridge & Counties Bank

Cambridge & Counties Bank, which has become the fastest-growing challenger bank in the UK, has a unique structure, being jointly owned by Cambridgeshire Local Government Pension Fund and Trinity Hall, Cambridge, each owning 50% of the bank.

Cambridge & Counties Bank launched last year and recently announced it has reached monthly trading profitability for the first time.  In just over a year, the bank has completed around 200 loans totalling around £80m to small and medium-sized businesses (SMEs) and now also looks after 1,500 SME deposit accounts.

The investment by the Cambridgeshire local government made good financial sense in bringing a good return for the pension fund and therefore reducing the potential of any burden on the taxpayer.

At the same time, it also had the added benefit of helping the local economy and business.

Chief executive Gary Wilkinson, who held a number of senior roles in the banking and building society sectors before joining the bank, is very proud of the performance so far. ‘It's rare for a bank to perform so well during its first couple of years,' he says.
‘The fact that the bank is on course to meet four year lending targets in just two years, and is set to release over £100m of loans to SMEs by the end of the year, shows that there really is an appetite for growth amongst local SMEs in areas like Cambridgeshire.'

‘The bank has been able to support a wide variety of industrial and commercial
sectors with secured property loans which have enabled its customers to expand their product offerings, increase trade and create jobs in their locality.'

It continues to structure its products to meet the long-term as well as short-term
needs of its customers, reflecting the bank's long-term vision of support for British industry and commerce.