Afin Bank, a new bank created to support people from Africa living and working in the UK, as well as certain overseas borrowers buying into the UK property market, has been granted its banking licence Authorisation with Restrictions (AwR).
Afin Bank will help people from Africa who find it difficult to get mortgages because of their nationality, visa status or lack of credit history in the UK, despite being part of some of the country’s most thriving communities, doing vital jobs and running their own businesses.
As a new specialist lender, Afin Bank’s products will also suit a broad spectrum of non-standard customers, such as high net worth borrowers, professionals and self-employed people, who struggle to get a mortgage through mainstream providers.
The bank aims to start lending next year through intermediaries, as well as via a digital app, offering residential and buy-to-let mortgages to people living in England and Wales, as well as BTL mortgages for borrowers based overseas in the West African Countries of Ghana, Sierra Leone and The Gambia investing in the UK property market.
Afin Bank will also offer a range of FSCS protected savings products to savers with a UK passport, as well 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, demonstrating its belief in the UK financial services sector and Afin Bank’s goal of supporting an under-served customer base.
Afin Bank’s CEO is Jason Oakley, who co-founded SME lender Recognise Bank in 2021. Alan Davison, formerly Distribution Director at Together Personal Finance, is Chief Commercial Officer.
Announcing the AwR licence, 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.
“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.”
In addition to working with intermediaries, Afin Bank will also build partnerships with groups and organisations that are part of the African community, including cultural networks and associations.
The inspiration for Afin Bank came from the real experiences of Africans living in the UK, particularly from West Africa, struggling to build banking relationships in this country. Initially Afin Bank will target African nationals, of which there are more than 1.5 million living in the UK. However, as the bank grows it is likely to appeal to borrowers from other under-served diaspora communities.
The Bank says that what sets it apart from mainstream providers is its deep understanding of its target customers, their needs and ambitions, and the financial challenges they face. This knowledge and the management team’s experience of building successful financial services firms means Afin Bank is well placed to create a bank for this important segment of the UK.
Afin Bank will use the best in IT platforms along with proprietary technology to provide effortless banking via a mobile app. This also means Afin Bank will be able to develop new products and services quickly, responding to the changing requirements of its customers.
