Better, a leading digital home ownership platform, has finalised its acquisition of Birmingham Bank, enhancing its platform in the United Kingdom.
Founded in 1955, Birmingham Bank has traditionally served customers in the Midlands. This acquisition marks a significant step in Better’s expansion strategy across the UK residential lending market.
Vishal Garg, CEO and founder of Better, shared his vision for the acquisition: “We are excited to bring Birmingham Bank into the Better family and look forward to helping it grow its exposure to residential lending business across the United Kingdom.”
The deal, which followed Better’s purchase of a minority interest in Birmingham Bank in 2022, received the green light from the Prudential Regulation Authority for Better and Vishal Garg to take on controlling stakes. The acquisition aligns with the bank’s revised strategy to bolster Better’s residential mortgage lending and grow its consumer and SME deposit base in the UK.
Matt Smith, CEO of Birmingham Bank, welcomed the acquisition: “Better’s acquisition of the Bank will bring to life our strategy and deliver a compelling proposition and service.”
The move is expected to generate 40 new jobs at the bank within three years, diversifying roles across various business functions.
Andy Street, Mayor of the West Midlands, commented on the investment: “This investment reinforces the West Midlands’ strong track record of attracting US investment and Better will be an extremely valuable addition to what is the UK’s largest regional financial and professional services cluster.”
Michael Lamont, Better’s Vice President for Europe, poised to join the Birmingham Bank board upon regulatory approval, emphasised the collaborative efforts: “We are delighted with the support to date from public and private sector leaders across Birmingham and the West Midlands and look forward to collaborating with them in the coming years.”
The acquisition terms have not been disclosed, but it represents a strategic enhancement of Better’s UK operations and a commitment to maintaining Birmingham Bank’s local legacy while pursuing nationwide growth in homeownership services.
