The term ‘challenger bank’ is perhaps something of a misnomer, as very few constituents of this universe are indeed challenging the ‘big five’ banks in any meaningful manner. Instead they are filling a void vacated by the big banks, offering a service that is no longer part of the bigger banks’ business model post the 2008 financial crisis.
Banks such as Virgin Money and TSB have perhaps stolen the headlines, but smaller names such as Secure Trust Bank, Aldermore Group and Shawbrook Group have come to market in recent years without so much fanfare…
[Source: The Financial Times - James Sullivan - Coram Asset Management - January 15, 2016]
