Tristan Mahoney, chief financial officer at Recognise Bank, shares how the specialist lender is building momentum across SME lending and savings, the steps being taken to streamline operations and strengthen its team, and why the Bank’s recent move into profitability marks just the start of its next phase of growth.
Since joining Recognise Bank as CFO in March, how has the Bank developed its offering to SME property investors and SME savings customers?
Since joining in March, I’ve seen real momentum across both our lending and savings activity. On the SME lending side, we’ve passed £100m in new originations, which shows we’re continuing to meet demand from property investors and business borrowers alike.
At the same time, we’re exploring ways to broaden our lending proposition. So, it’s not just about what we’re doing now, but how we continue to grow our support for the sector.
On savings, we’ve simplified the product range to make it easier to understand and more accessible, while still offering strong rates. It’s all about combining clarity with value, for both savers and borrowers.
Recently the National Federation of Independent Business reported that optimism increased slightly in August, with more owners reporting stronger sales expectations and improved earnings. Is that optimism reflected in the feedback and interest you’ve had from SMEs on both the lending and savings side?
There’s a bit more optimism out there, but it’s cautious. We’re hearing it most from property professionals and those with long-standing experience in the sector. Forecasts are suggesting modest growth. The OBR, for example, is projecting GDP growth of 1% in 2025 and 1.9% in 2026, and that seems to be lining up with what we’re seeing on the ground.
There are early signs of things levelling off. Enquiries are picking up, and while agreed sales are still below where they were a year ago, the mood isn’t as downbeat as it was.
That said, a lot of uncertainty remains, particularly around interest rates, inflation and tax policy. So, while the market may be steadying, the confidence is still strongest among professionals who are used to the volatility.
How has the Bank invested in people and technology this year to build for its next phase of growth?
We’ve made some big strides this year. On the tech side, we’ve focused on automation, things like reconciliations and posting in Finance, which has shaved five days off our month-end close. It’s all part of making our systems faster and more scalable. We’re also upgrading our loan processing and risk tools to support better management information and improve the customer experience.
People-wise, we’ve added strength at senior levels and brought in mentoring programs to help colleagues build their skills. Personally, I’m very focused on development. While I do keep a close eye on spending, I’m always happy to invest in training that genuinely builds capability.
As CFO of a specialist bank, what challenges do you face that are different to non-bank lenders or those with large retail deposit bases? And how do you meet those challenges?
One of the biggest differences is that we don’t have a huge pool of low-cost retail deposits to rely on, like the bigger banks do. But while they benefit from cheaper funding, it often means savers get a worse deal. We’ve taken a different approach, balancing direct and indirect savings flows while still offering competitive rates.
Scale is another factor. Larger banks can rely on big teams and deep infrastructure. Non-bank lenders work under different rules altogether. As a challenger bank, we have to be flexible. People often wear multiple hats, and we move quickly when things change. That agility is one of our strengths.
Then there’s capital. Reaching profitability is a major hurdle for smaller banks, and raising money before you get there isn’t easy. We’re fortunate to have a patient, experienced principal shareholder who’s already supported us through to breakeven and has committed further capital to support our next phase.
What’s next for Recognise Bank?
It’s certainly been a fast-paced few months since I joined. We’ve grown the loan book, streamlined our cost base, and I’m pleased to say we’ve just delivered our first profitable quarter, with a profitable half-year firmly in sight.
Looking ahead, we’re building on that momentum. We’re working through the permissions and infrastructure needed to expand our product range, both on the lending and savings side, so we can support more SMEs across the UK.
We’re also continuing to invest in our people and systems to make sure the Bank is not just delivering results but is a place we’re all proud to be part of.
