North West Mutual, which aims to launch the UK’s first regional co-operative bank, has submitted its formal banking licence application with the Bank of England.
The bank plans to serve retail and business customers in the North West of England is to establish the UK’s first regional co-operative bank, “offering a genuine alternative to a corporate banking landscape that has been characterised by widespread branch closures and a significant reduction in lending to small and medium-sized businesses”.
CEO Dave Burke said the application is “a hugely significant milestone”.
Submitting our formal banking licence application brings us another important step closer to providing the banking services we believe the people, communities and businesses of the North West both deserve and want,” he added.
“Reaching this stage is a considerable achievement. Before submitting our application, we have been through an extensive period of pre-application engagement with the Bank of England and the Financial Conduct Authority, during which our proposition, business model, governance arrangements and plans have been subject to detailed scrutiny and challenge.”
Although submission does not guarantee that authorisation will be granted, prospective banks are expected to demonstrate that their proposition is credible, viable and sustainable and that they are ready, willing and organised to enter the formal assessment process.
“Reaching this milestone is therefore testament to the tremendous amount of work undertaken by the North West Mutual team,” said Burke, “and to the constructive relationship we have developed with the regulators. We now look forward to continuing that engagement as they undertake their full assessment of our application.
“Our ambition is to establish the UK’s first regional co-operative bank, offering a genuine alternative to a corporate banking landscape that has been characterised by widespread branch closures and a substantial reduction in lending to small and medium-sized businesses.
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“We want to create a bank that is rooted in the North West, understands its communities and is committed to supporting the region’s long-term economic prosperity.”
Burke said the bank will be built on “distinctly co-operative and ethical foundations”, run on a one-member, one-vote basis regardless of how much money is held with the bank.
The mutual intends to pay the Real Living Wage and maintain “a sensible and transparent ratio between our highest and lowest salaries”, he added.
“These principles reflect the responsible, inclusive and accountable institution we want to build.”
In 2025, Preston City Council invested £250,000 in the project, with the head office planned to open in the city late next year or in early 2028.
“I would like to thank Preston City Council for the important part it has played in helping us reach this stage,” said Burke, “and for its continued support and confidence in our vision. Preston is central to our plans: it will be the home of our head office and, subject to regulatory approval, our first branch.”
Cllr Valerie Wise, deputy leader and cabinet member for community wealth building at Preston City Council, said: “NW Mutual Bank is making great progress, and we will continue to support the bank along its journey to opening the first branch and head office in Preston.
“Its ethical approach to banking aligns with our corporate priorities and ambitions and our long-standing commitment to Community Wealth Building that is helping to build fair and resilient communities and to support a democratic economy where everyone can thrive.”
The Preston branch will be the first of 60 planned across the region. NW Mutuals says the first phase is expected to create approximately 40 new jobs in Preston, with up to 200 roles anticipated across the North West as the bank expands and additional branches open. Recruitment for the initial positions is due to begin later this year.
“Our focus now turns to working closely and constructively with the banking regulators as they assess our application, continuing to develop the systems and infrastructure required to make the bank a reality, and building the wider team that will help us serve our customers,” said Burke.
“As the prospect of opening our doors for the first time draws closer, we expect recruitment and preparations in Preston to gather pace.
“Our present ambition is to open our first branch in late 2027 or early 2028, although the timing will remain subject to regulatory approval and operational readiness.
“We have made excellent progress, but establishing a new regional bank is a substantial undertaking. We therefore remain keen to speak with organisations and investors that share our belief in the North West and our ambition to create a bank rooted in and accountable to the communities it serves. Additional strategic support and capital will always be welcome as we work to turn that ambition into reality.”
NW Mutual says it will offer a proposed “bricks, clicks and flicks” model with “hi-tech and staffed branches, complemented by mobile and online banking, providing retail and small and medium-sized enterprise (SME) customers with a full range of financial products and services”.
