Secure Trust Bank is an established, well-funded and capitalised UK retail bank. The Group's strategy is to build on its current position as an established UK retail bank through a focus on carefully selected and attractively priced segments of the consumer and business markets, prudent underwriting and a prudent approach to capital and liquidity. The Group intends to continue growing its business through professional and responsible lending across existing and new lending divisions and selective acquisitions of loan books and businesses, funded by capital and customer deposits.
The Group, which has a 64 year trading track record, operates principally from its head office in Solihull, West Midlands, and had 630 employees (full-time equivalent) as at 30 June 2016. The Group's diversified lending portfolio currently focuses on two sectors, almost entirely funded by customer deposits, with substantially no exposure to wholesale funding:(i) Business Finance through its Real Estate Finance, Asset Finance and Commercial Finance divisions
(ii) Consumer Finance through its Personal Lending, Motor Finance and Retail Finance divisions.
The Group's fundamental strategic aims are:(i) to maximise shareholder value through strong lending growth by delivering positive customer outcomes in both its existing markets and new markets
(ii) to protect the reputation, integrity and sustainability of the Group for all of its customers and stakeholders via prudent balance sheet management, investment for controlled growth and robust risk and operational control
(iii) to ensure that the fair treatment of customers is central to corporate culture
(iv) to ensure that the Group provides a supportive environment for its employees to deliver good service levels for its customers
Lending customers are primarily sourced through carefully selected business partners and through online channels. The Group has developed underwriting technology and processes in its Consumer Finance segment to enable it to make lending decisions quickly, often on an automated basis, and has high customer satisfaction scores.
Through carefully targeted lending products, the absence of large fixed overheads, in the form of a branch network, and a policy of not cross-subsidising loss making products with profitable ones, the Group is able to offer competitive deposit interest rates and has been successful in attracting deposits from a wide range of customers. The Group's strategy is to broadly match customer loans and deposits of similar maturity. Deposit accounts offered to customers at any one time are therefore differentially promoted to broadly match the Group's funding needs and desired maturity profiles and may include deposit accounts ranging from instant access to seven year bonds. This strategy seeks to help mitigate maturity transformation and interest basis risks.