One of the greatest advantages of modern banking technology and licensing is the ability to create players and lenders to serve nearly every niche.
Think digital banks for students, migrant workers, micro-businesses and… farmers?
That’s the goal of Chester-based Oxbury, a new bank set up to lend to farmers who face a dearth of cash following Brexit.
While other banks treat farmers like small businesses Oxbury, which The Times reports is close to securing a banking licence, will lend according to specialist cashflow needs which often fluctuate with the seasons.
“Oxbury provides farmers with the specialised lending they need to run their farms and offers savings accounts to any individual or business that want to back British farmers and UK agriculture,” said CEO and co-founder James Farrar, who also set up ClearBank in 2015.
Whether or not Oxbury ends up other banking services waits to be seen, but given the warnings from the National Farmers’ Union around what impact Brexit could have on the industry later this year, the team are certainly entering a market hungry for support.
Farrar and fellow co-founder Nick Evans have investors behind the bank including crop protection group Hutchinsons and grain supplier Frontier Agriculture.
The soon-to-be bank’s board of directors include ex-head of business banking at HSBC Huw Morgan and former Bank of England adviser Tim Fitzpatrick.