Preston-based North West Mutual (NW Mutual) is making significant progress toward becoming a fully licensed bank, with the company aiming to address the decline of banking infrastructure across the UK’s North West region.
In conversation with FinTech Futures, CEO Dave Burke highlights: “Over the last decade, 68% of bank branches across the UK have closed their doors. In the North West, that figure is even starker, with 70% gone. At the same time, lending to small and medium-sized enterprises in the North West has dropped by almost 50% in real terms.”
“This is not just a shift in consumer habits, it’s a withdrawal of vital infrastructure,” adds Burke. “When branches close, people and businesses lose access not only to cash and services, but also to trusted financial advice. For many elderly people, those unfamiliar or uncomfortable with digital banking, or businesses dealing in physical cash, this isn’t just inconvenient, it’s exclusion.”
To address these challenges, Burke and his seven-member team are establishing an institution owned by its members and “accountable to the communities we serve, and guided by one simple principle: what’s best for our region is best for our bank”.
The organisation is currently navigating the Bank of England’s New Bank Start-Up Unit licensing process. Burke reveals NW Mutual is “currently concluding the second phase of pre-application”, working closely with the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) to prepare a “well-considered application”, adding it is “looking to enter the final stage in the coming weeks”.
With regulatory approval anticipated in the second half of 2026, NW Mutual plans to open its first branch in early 2027. Initial offerings will include current accounts for individuals and small to medium-sized enterprises (SMEs), mortgages, overdrafts, and a “FairPay” product that enables fee-free instant transfers between members. “Critically, our branch staff will have the autonomy to utilise their local economic knowledge to assist in lending decision-making,” explains Burke.
NW Mutual intends to “gradually increase” its branch network to 60 spread across Cheshire, Cumbria, Greater Manchester, Lancashire, and Merseyside, aiming to hit its full complement by year nine. According to Burke, “60 is the minimum number of branches needed to ensure the entire population of 7.5 million people are no further than 30 minutes away from a branch.”
While emphasising the importance of physical locations, NW Mutual will complement its branch network with digital banking services through an app and online platform.
The bank has secured the necessary seed capital to fund operations until licensing, including investment from Preston City Council, where the first branch is planned to be located. Burke notes the company is also “seeking further investment to provide the mandated regulatory capital that a bank requires as it becomes operational”.
Looking ahead, NW Mutual expects to employ around 200 people when fully established and plans to expand its product offerings based on member feedback and preferences.
Source: https://www.fintechfutures.com/
