Paragon launches banking subsidiary

18th Feb 2014 07:56

The Paragon Group of Companies has launched a banking subsidiary after receiving authorisation from the Prudential Regulation Authority.Paragon Bank has been provided with an initial capital of £12.7m, with additional funds due to be supplied over time to support the growth of the business.The bank is being led by Managing Director Richard Doe, who was previously Chief Executive of ING Direct UK. Group Chief Executive Nigel Terrington said: "The establishment of Paragon Bank facilitates a return to consumer finance lending, benefiting from the group's heritage, expertise and scale as a low-cost specialist lender. "Initially, Paragon Bank will focus on lending in sectors where Paragon has extensive experience and previous success, in markets which are displaying good growth opportunities."The bank will offer savings and loan products, as well as car finance lending through brokers and car dealers, with savings products becoming available online in the spring. Personal loans will be offered through intermediaries and will launch later in the year, while other consumer finance and small to medium enterprise products will be developed in the future.NR