CivilisedBank plans to join UK challenger banks with 2015 launch

LONDON, March 8 (Reuters) - A new online British bankexpects to launch for small and medium-sized business customerslater this year after securing its first phase of funding andstarting its application for a banking licence, it said onSunday.

CivilisedBank joins a handful of other so-called"challenger" banks aiming to break the dominance of Britain'sbig five lenders, seeking to benefit from lower costs, newtechnology, no legacy issues and encouragement from politicians.

CivilisedBank said it will not have branches but operatethrough a network of local bankers backed by a technologyplatform being rolled out for the first time in Britain. Banksusing the software platform include BNP Paribas andAlpha Bank, it said.

The bank said it will initially target owner-managers ofmedium-sized UK businesses by offering business current accountswith deposits, transaction banking, overdrafts, foreign currencyexchange, investments, savings and loans. At a later date itplans to target the UK retail market with specific savings andinvestment products.

Barclays, Lloyds Banking Group, HSBC and Royal Bank of Scotland have long dominatedBritish banking, and Santander now rivals them on theHigh Street. Those five control more than 80 percent of thepersonal current account market and over 85 percent of smallbusiness banking.

Regulators and politicians have tried to make it easier fornew firms to break that stronghold, and in recent years MetroBank, Aldermore, Shawbrook and OneSavings have launchedand there are more than 20 other firms such as Atom Bankapplying for licences. Many are targeting specific regions orniche clients.

Most challenger banks are planning to operate online and usenew technology allowing a quicker and cheaper platform.

CivilisedBank's chairman is Chris Jolly, who has held seniorroles in real estate and at Merrill Lynch, Commerzbank andSociete Generale. Its chief executive is Gordon Dow, previouslymanaging director for private banking at Santander. (Reporting by Steve Slater Editing by Jeremy Gaunt.)