Monday 28 November 2016 3:46 pm

Meet Masthaven: The latest challenger bank on the scene

Masthaven has become the latest challenger bank on the scene, as it officially opens for business today.

The bank was initially awarded its retail banking licence in April and has spent the time between then and now strengthening its team and developing its technology platform and product offering.

At present, the challenger offers a flexible term savings account, where savers can choose an account length between six months and five years.

Masthaven also intends to launch on the mortgage market early next year, with a focus on bridging lending, aimed at those who are living between properties or looking to downsize.

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"We are determined to help more people access financial products that will truly meet their needs," said Andrew Bloom, founder and chief executive of Masthaven. "We have established a fantastic and dedicated team of experts to get the bank to launch and we are now very much looking forward to working with customers and brokers to show them what we have created."

Jon Hall, managing director of Masthaven and former chief executive of Saffron Building Society, added:

I am delighted to open the digital doors of this fantastic new challenger bank. We know everyone has different financial needs and that's why we are providing products that our customers want, not just products that banks have always had available.

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The economic secretary to the Treasury, Simon Kirby, remarked:

We want our financial services industry to be the most competitive and innovative in the world, delivering greater choice and value for customers. New digital banks entering the market are a key part of this vision and help to cement the UK's leading position as a global fintech hub.

I am delighted that Masthaven is now open for business and look forward to seeing it flourish as a new player in retail banking.

Joining Bloom and Hall on the bank's board are former chief exec of the UK financial services practice at KPMG, Peter Harrison, as chairman, along with non-execs Anne Gunther, ex-chief executive of Norwich & Peterborough Building Society and Standard Life Bank, Ashley Machin, previously digital chief at TSB Bank and Michael Baker, financial director of Joint Ventures at the William Pears Group.

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The bank will run under a partnership model and 80 per cent of the challenger's employees are already shareholders in the business.