After nearly 90 years as a proudly local bank, Conister is spreading its wings and plans to offer some of its services to UK customers too.

Conister Bank Limited, which is a wholly owned banking subsidiary of AIM-listed Manx Financial Group PLC, has announced that it has applied for a UK branch deposit taking licence. The application was submitted to the Prudential Regulation Authority and Financial Conduct Authority on October 26.

Since it opened in 1935, Conister has built its reputation as both a local deposit taker and a lender.

The UK branch application, if approved, will allow Conister to grow its balance sheet, subject to the necessary regulatory capital, by up to an additional £0.5 billion through a mixture of UK deposits and wholesale funding. Among other benefits, this will allow the bank to offer more loans to customers on the island, as well as to new ones in the UK.

Manx Financial Group already employs 42 people in the UK in its Conister Finance and Leasing business which provides funding to support the growth of businesses there.

Speaking about Conister’s own growth strategy, Douglas Grant, managing director at Conister Bank and Manx Financial Group’s chief executive officer, said: ‘Obtaining a UK branch deposit taking licence will provide Conister with access to the UK deposit market, supplementing the traditional liquidity from our loyal Isle of Man depositors. If approved, the licence will also provide access to the UK payments market and other initiatives where a banking licence provides the holder with a seat at the table. This application is a significant milestone in our banking subsidiary’s UK expansion strategy.’

The UK licence approval process is expected to take up to a year.