New London-based digital real estate and development bank GBB has partnered with Mambu to market its new services. GBB will execute its operations through Mambu’s SaaS banking platform to power its revolutionary digital offerings.
GBB and real estate development
GBB was launched with the aim of accelerating the UK construction industry. The new UK bank, specializing in property and development finance, will be a dedicated lender to SME property developers in the UK’s most underserved areas.
At present, it is estimated that approximately 245,000 of the government’s annual construction target of 300,000 homes has been met. Mambu’s native cloud platform will enable GBB to respond faster and easier to market changes while delivering banking products and excellent customer experiences, driving long-term growth and profitability.
Mambu and GBB partnership
The announcement of the partnership has been overdue for some time, as Mambu has worked with GBB for three years, fulfilling a mandate to innovate and iterate as it grows. New fintech’s proprietary state-of-the-art technology platform enables comprehensive end-to-end delivery of real estate development loans and includes a dynamic risk assessment tool.
GBB’s support for the recovery of the UK construction sector will include providing property development loans of between £ 1-5million to regional property developers, SMEs and construction companies in the North. East, Yorkshire and the North West.
The new digital bank aims to lend a total of £ 3 billion over five years, creating a balance sheet of over £ 1 billion. It will finance nearly 20,000 housing units and several million square feet of office space, supporting the creation of more than 100,000 jobs.
For savers, competitive fixed rates will be protected by the Financial Services Compensation Scheme (FSCS).
GBB also hopes to receive its banking license later this year and will offer tailor-made development finance, an area of commercial lending underserved by incumbent banks.
GBB and new technologies
GBB has chosen to compose its own architecture with Mambu’s SaaS banking platform, as opposed to a more traditional “bank-in-a-box” approach. This ensures the flexibility to swap out components as needed, avoiding vendor lock-in and wholesale re-platforming.
Mambu’s platform also enables GBB to develop and launch bespoke loan products using a streamlined platform, which benefits from continuous upgrades.
Commenting on the collaboration, Stephen Lancaster, Chief Information Officer of GBB, explained: “One in three real estate developers in the UK are denied funding. Many shy away from applying for loans altogether, fearing rejection. Traditionally, SMEs have been the most underserved group, as existing banks and lenders tend to prioritize higher loan values. Our mission is to make a difference, and we can only do that by leveraging the best cloud technology today. “
He continued, “We have partnered with Mambu because, like us, they are customer obsessed and understand the role of technology in giving customers a better experience. The team understands our market very well and has supported us on our journey to become a bank every step of the way. “
Elliott Limb, director of clientele at Mambu, said that unlike most challenger banks, GBB recognizes the potential of the north of England. “This part of the UK has been underserved for decades and the GBB model is essential to its development.
He added: “We have a strong partnership with GBB and look forward to helping them provide financial access to real estate developers and SMEs in the regions. “
Main image credit: GBB CEO Steve Deutsch and Middlesbrough Mayor Andy Preston