Conister - “the new to market” Bank that isn’t new at all
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Conister - “the new to market” Bank that isn’t new at all
When the announcement arrived towards the end of 2023 that Conister Bank had been accredited with a deposit-taking licence in the UK, for many in the financial services arena, it might have felt like a “here we go again” moment.
A start-up bank with big plans and no track record. But nothing could be further from the truth.
For Conister has a long and proud history. It’s a bank that has been around since 1935, racking up substantial deposit-taking and lending numbers along the way. And speaking of volumes, its customer retention levels are also impressive, by any standard.
This is a business that can call on a wealth of experience across many specialities and is destined to go places in the future.
For over two decades, Conister Bank has operated within the UK under the name Conister Finance & Leasing, laying a strong foundation for success. Having recently achieved full banking status, it's important to recognise that Conister Finance & Leasing has long maintained a robust presence in the UK. Over this period, it has provided over £1 billion in loans to small and medium-sized enterprises (SMEs) across the country.
The “orange” Conister Finance & Leasing branding, familiar to many, will soon be a thing of the past, to be replaced nationwide by the distinctive Conister Bank “purple” livery.
Now holding a banking licence, Conister is poised to elevate its operations to new heights. This development enables the bank to offer a variety of fixed deposit options for retail customers while continuing to serve the SME sector with asset finance, commercial loans, professions finance solutions, and a range of sought-after Structured Finance products for non-bank lenders (refer to the Structured Finance section).
This diverse operation is run from sophisticated new headquarters in Hampshire, staffed by a knowledgeable, multi-skilled and growing team.
Cultural Commitment and Sustainable Growth:
Conister Bank recognises the importance of cultural diversity and heritage in enhancing community interactions and strengthening customer relationships. As the bank approaches its 90th anniversary, its dedication extends beyond financial services to actively participating in and supporting cultural initiatives. Haseeb Qureshi, Conister Bank’s Chief Operating Officer, who also heads up the UK operation comments, “Our commitment to making a difference goes beyond mere words. We are ardent advocates for sustainable development, championing a business model that is responsible and prioritises sustainability. This philosophy has been integral to our vision from the very beginning.”
Long-standing credentials
Conister Bank, an Isle of Man domiciled bank came into being a long time ago, in the year that Britain marked King George V’s Silver Jubilee and Rowntree’s launched their first chocolate crisp bar. That was way back in 1935, to be precise. Next year, Conister will celebrate its 90th anniversary.
The Conister name has been centred around a combination of personal and commercial banking facilities – it’s a trusted, community-based institution. Today, the Bank is a wholly owned subsidiary of the AIM-listed Manx Financial Group PLC, making history last October when it became the second Isle of Man-based bank to secure a deposit-taking licence in the UK.
“People may see us as new kids on the block, but the reality is we’ve been around for a long time,” said Haseeb Qureshi.
He said the Bank should not be compared to the proliferation of start-up fintech companies popping up on price comparison sites, underpinned by huge amounts of private equity investment.
“That’s definitely not us,” Haseeb emphasised. “We are an established bank, that has taken approximately a £400 million of deposits through our systems, people and processes. “Yes, we have a customer focused product range, but we are certainly not coming at this from a standing start.”
A fully digitalised retail customer offering
He said that it was always the Bank’s strategic goal to enter the UK deposit-taking market, to augment Conister’s existing Isle of Man deposit-taking activities. “We are in the UK to introduce an attractive proposition for retail depositors, which will have access to our easy-to-use, fully digitalised processes,” he continued.
Previously, the majority of the bank’s deposits were raised through the Isle of Man, even though a significant proportion of the loan book was attributed to UK lending. “Now, our target is to strategically grow our lending and deposit book in the UK through our new deposit taking, to increase our capabilities to fund asset finance and structured finance divisions,” Haseeb said.
One of Conister's top priorities is to move the UK business to a fully-fledged digitalised operation. This follows the success of the digital distribution channel on the Isle of Man, which now accounts for over 70% of the bank’s funding to retail customers.
“Digitalisation is instrumental in taking the business forward,” Haseeb pointed out. “It will enable us to compete with other banks in our target markets. However, it is important that our offering is the right one for our customers, in line with the values, ethos and culture that we have strived to achieve for our existing business with regards to deposits.”
Conister Bank are targeting retail customers who are largely familiar with onboarding deposits via digital and online platforms.
“We will have a competitive range of products, featuring self-service portals, flexible onboarding arrangements and access to apps that can be accessed from portable devices. It will be a fully digitalised, a user-friendly offering which we know from experience will be heavily subscribed. There are a lot of exciting digital enhancements that are coming the way of our customers.
“They will be presented with a clear and concise process to follow – but it won’t be dehumanised. We will be balancing the digital touch with the personal touch,” he stressed, pointing out that accessibility and service had been lost in banking due to the rush towards fintech. “We are not going down that route,” he said.
Haseeb said he was looking forward to opening up the good name of the Conister brand to a far wider UK audience. “I am confident they will be very responsive to our products and the convenient way that they will be able to access and develop them.
“Our staff are very focussed on helping Conister Bank become a formidable player in the UK deposit taking and lending arena in the years ahead,” Haseeb stated, adding that this was just the first chapter in an evolving story. “We are here for the long-term. Just like we have always been.
In the ever-evolving landscape of structured finance, Conister Bank has emerged as a beacon of innovation, largely due to the efforts of individuals like Chris Blackburn, Head of Structured Finance. With a keen understanding of market dynamics and a customer centric approach, Chris’s expertise and dedication has been pivotal in shaping the bank’s offerings to better serve ambitious SMEs.”
Conister’s new Interest-Only Block product
The world of Structured Finance is familiar territory for non-bank financial institutions (NBFIs). But it isn’t an arena where new products come flying off the shelf every five minutes – especially ones that provide a fast-track to business growth.
That’s why Conister Bank’s latest Structured Finance offering, due to market shortly, looks set to create plenty of interest amongst ambitious NBFIs, with an eye on scalability.
Conister has operated a highly successful Structured Finance division for the past ten years, which has provided a sizeable contribution towards the Conister’s overall loan book. To date, its well-subscribed suite of Structured Finance products includes a Revolving Credit Facility, an Integrated Wholesale Funding Agreement (IWFA) and a Block Discounting option.
The new product relates primarily to the latter of these – in the form of an Interest-Only Block. With an traditional Block facility, customers make on-going capital and interest repayments on the facility. The Interest-Only Block Product will, crucially, enable lenders to retain the capital element of the agreement payments received, until the end of the term.
Immediate Funding Available to Generate Fresh Loans
Conister’s Head of Structured Finance, Chris Blackburn, believes the interest-only option will offer significant advantages for the bank’s customers and will add a new dimension towards an already popular Conister product range.
“The huge advantage of an interest-only block is that it will enable our clients to retain the capital element of the agreement due to us, providing them with immediate and substantially more available funding with which they can generate new agreements,” explained Chris, who has been busy meeting customers across the UK in recent months, to spread the positive Conister message.
“This product will offer them the opportunity to significantly grow their businesses, because they will now be able to churn freed-up capital into new agreements far more readily than would be possible if they were subject to a capital and interest repayment schedule.
“The Interest-Only Block Product will be a seamless route for NBFIs to unlock significant, fast-track growth opportunities,” said Chris, adding that now was a great time for NBFIs to be talking to Conister about their Structured Finance options.
Conister’s Revolving Credit Facility and Block products offer loans of between £500,000 and £9 million, with a maximum advance of 70-95%. The IWFA starts at £9m up to £100 million plus, with an advance of 100%.
Conister Bank has always prided itself on offering tailored financial solutions, knowing that each individual lender will be at a different stage of their business evolution.
“So, if you aren’t sure which Structured Finance product is best suited to meet your requirements, please get in touch and we will be happy to steer you towards the most suitable product,” added Chris.
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