Distribution Finance Capital Holdings plc (LON:DFCH), a newly authorised bank providing personal savings products and working capital solutions to dealers and manufacturers across the UK, has announced that its subsidiary, DF Capital Bank Limited, has raised retail deposits in excess of £50m since its savings products were launched earlier this month.
The Group announced its maiden range of personal savings products on 14 October 2020 and has since added a 2 year fixed rate to its product range to meet the demands of savers. The Group expects to add further fixed rate products shortly and will complement this with the launch of online banking capabilities in 2021.
Retail deposits allow the Group to replace more expensive wholesale debt, grow its loan book and help drive its net interest margin towards the Group’s stated target of c6%.
Carl D’Ammassa, Chief Executive of DF Capital Bank commented: “We are delighted by the response we have received from depositors looking for a safe and secure home for their savings, whilst also earning market leading rates of interest. The re-assurance of the Financial Services Compensation Scheme’s protection and a quick online application process is proving attractive. With over 3,000 accounts now open and our customers indicating they intend to deposit in excess of £100m with us, we anticipate further inflows over the coming weeks. In response to this strong demand, we have temporarily closed our 1 year fixed rate and 90 day notice accounts for new applications, but have exciting plans for additional products and even easier ways of banking with us in the pipeline.”
