Bank of London, Led by Lord Mandelson, Secures £25 Million Amidst Growing Pains

An innovative bank, led by Lord Mandelson, secures £25 million from financiers after facing a second yearly loss. The Bank of London, with Lord Mandelson on its board, obtained a banking license in 2021 and further funding in November to meet regulatory capital requirements.

Despite losses increasing to £41.8 million for the year ending December 2022, attributed to technology expenses and a hiring binge, the bank is set to exhibit turnover in 2023. Anthony Watson, the 'Insta-banker' and LGBT activist, founded the clearing house.

Bank of London, positioning itself as the second clearing bank in the UK in 250 years, competes with major players like Barclays and HSBC. With Lord Mandelson as deputy chairman and backing from venture capitalists, including Harvey Schwartz, the bank targets challenger banks like Monzo and Starling.

The bank, valued at $1.1 billion (£860 million) after a Series C funding, focuses on disrupting corporate banking infrastructure amidst growing interest from fintech disruptors like ClearBank.