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Business & Economy

Middlesbrough challenger bank GBB secures £28 million boost

A challenger bank has secured a £28 million investment agreement it says will catalyse its journey to gaining an operating licence.

Middlesbrough-headquartered GBB is being supported by the Teesside Pension Fund.

The commitment follows a previous £20 million outlay by the fund into the bank.

GBB, which hopes to gain a provisional licence to launch later this year, aims to be an “engine of economic growth for regional SME developers” by providing tailored lending to residential and commercial property operators.

Reacting to its latest funding boost, Sue Hayes, GBB chief executive, said: “Accessing finance still remains a challenge for many developers and it’s my ambition to make that a much easier, more straightforward process.

“We’re delighted the Teesside Pension Fund shares our vision and its fantastic ongoing support will help us through the regulatory journey of becoming a bank.”

Councillor David Coupe, chair of the Teesside Pension Fund, added: “We are proud to support GBB in their mission to support SME property developers and in turn help address the chronic shortage of housing.

“It’s been a long-term aspiration of the fund to invest in an attractive and well-controlled local opportunity and we’re pleased to have identified a robust, digital start-up such as GBB as a strong way to maximise returns for the pension fund’s beneficiaries.”

Alongside Sue, GBB’s senior team includes chairman Paul Rippon, the co-founder of digital banks Starling and Monzo.