There are some potential bank launches in the pipeline for 2024 and savers could see three new banks coming to the market next year, a banking insider says.
At a time when fixed-rate bonds are being cut, one of them could start off by launching fixed-rate bonds.
These are the three banks which could launch in 2024 and what they could offer.
Lift off: Three new banks could launch in 2024, two already have authorisation while one is hoping to receive it in 2024
Alba Bank
Scotland-based Alba Bank first launched in 2015. It was authorised and received its banking licence in March of this year. The bank will support small and medium enterprises in Scotland.
The bank hoped to finally begin trading by the end of this year. Now, James Blower predicts that savers could see it enter the market in the first half of 2024.
He says: ‘Alba Bank is authorised with restrictions and could enter the market in the first half of next year. Expect it to launch initially with fixed-rate bonds.’
What? Fixed-rate bonds
When? First half of 2024
Alba Bank could launch in the first half of 2024
Conister Bank
Conister Bank became the first Isle of Man bank to secure a licence to take deposits in the UK.
It was given the green light by the FCA and Prudential Regulation Authority in October this year and now it could launch in the first half of 2024.
Conister is the Isle of Man’s longest established community bank, launched in 1935.
It has been active in the UK for a number of years and currently lends about £350million to UK small and medium enterprises per annum.
When: The first half of 2024
Conister Bank could launch in the first half od 2024
Bevan Money
Bevan Money is going through the process of becoming an authorised UK bank having submitted a full banking licence application in May 2023.
It started the process of becoming an authorised bank during the first lockdown of 2020 and it aims to offer products designed to support public sector workers in 2024.
James Blower thinks it will gain authorisation with restrictions in the New Year and enter the market by the end of 2024.
When: By end of 2024
Bevan Money could launch at the back end of 2024 once it receives a banking licence
Would your money be safe with these banks?
As for whether your hard-earned nest eggs would be safe with one of these banks, as long as any deposits are within the Financial Services Compensation Scheme (FSCS) limit of £85,000 per person, your money is safe even if one of them goes bust.
As Alba Bank and Conister Bank have a banking licence, any money held there would be protected up to £85,000 under the FSCS scheme.
If Bevan Money receives a banking licence as expected, any money kept there would also be protected up to £85,000. It will not be able to take deposits without a banking licence.
James Blower says: ‘The new banks will have FSCS protection so savers will be safe as long as they stick within the FSCS limits.’
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