Afin Bank, a specialist lender targeting African nationals living and working in the UK, is set to launch to market next year.
Afin Bank is currently in the mobilisation stage and has been granted its banking licence authorisation with restrictions (AwR). The banking licence AwR was granted to All Africa Capital Ltd, which will change its name to Afin Bank today.
The specialist lender will also support certain overseas borrowers buying property in the UK, high-net-worth (HNW) individuals, professionals and self-employed borrowers.
The bank said it would help people from Africa who find it hard to get mortgages in the UK because of their nationality, visa status or lack of credit history in the UK, despite some of them being business owners or doing vital jobs.
It will offer residential and buy-to-let (BTL) mortgages across England and Wales through intermediaries and a digital app.
Afin Bank said its access to “best in” IT platforms would allow it to develop products and services quickly.
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It will also provide BTL mortgages to borrowers based overseas in West African countries, including Ghana, Sierra Leone and The Gambia, that are investing in the UK property market.
Additionally, Afin Bank will offer Financial Services Compensation Scheme (FSCS) protected savings products to savers with a UK passport, as well as people from Ghana, Nigeria, Sierra Leone and The Gambia resident in the UK.
Afin Bank is backed by parent company, WAICA Reinsurance Corporation Plc (WAICA Re), one of the largest reinsurance companies in Africa and in the top 100 reinsurers worldwide. WAICA Re has committed £60m to Afin Bank.
In addition to working with intermediaries, Afin Bank is also building partnerships with groups and organisations that are part of the African community, including cultural networks and associations.
The lender said it launched to address the experiences of Africans living in the UK, particularly from West Africa, who sometimes struggle to form banking relationships in this country.
The bank will initially target African nationals, with expectations to cater to other under-served diaspora communities as it grows.
In tune with customer circumstances
Jason Oakley, co-founder of SME lender Recognise Bank, is the CEO of Afin Bank.
Its chief commercial officer is Alan Davison, formerly distribution director of Together Personal Finance.
Following the bank’s AwR licence approval, Davison said: “Not only is this an important milestone for Afin Bank, it is also great news for under-served customers who are not being supported by mainstream lenders.
“While there are some buy-to-let products available to non-UK nationals, there are very few residential mortgages designed for foreign nationals looking to buy their own home. Borrowers are usually considered by most banks simply on credit appetite, rather than being offered products that suit their needs.”
He added: “Afin Bank’s credit underwriting will be tuned to our customers’ circumstances, ensuring common-sense decisions, quick service and certainty for the borrower and their intermediary, for both residential and buy-to-let lending.”
