Bank of London shakes up UK board in investor-led recovery plan
The Bank of London has appointed four new directors to its UK bank board and replaced its chair as the troubled fintech ‘unicorn’ looks to recover from a string of setbacks in recent months.
The lossmaking start-up, which has faced heavy scrutiny over its governance and finances, said on Thursday that Metro Bank director Catherine Brown will replace David Skillen as its UK chair as part of an investor-led restructuring.
It is the latest shake-up in the clearing bank’s leadership, after four board members of its holding company stepped down in October, including Labour grandee Peter Mandelson and ex-Goldman Sachs executive Harvey Schwartz.
“These appointments underscore The Bank of London’s focus on strong governance and measured growth, and its ongoing dedication to serving its clients and stakeholders with integrity and care,” the company said on Thursday.
“By strengthening its board with these senior financial professionals, the bank is laying the foundations for the next stage in its development.”
The bank touted Brown’s “extensive financial services board leadership experience”. Her current posts include a directorship at insurance firm QBE, while she formerly served as group strategy director at Lloyds and executive director of HR at the Bank of England.
Skillen joined The Bank of London in 2021. He was previously chief operating officer for global retail banking at Barclays between 2009 and 2013.
Elsewhere, former KPMG partner Simon Walker was named as chair of the bank’s board risk committee. He is also chair of the risk committee at FTSE 250 lender OneSavings Bank and sits on the board of The Bureau of Investigative Journalists.
Monique Melis has agreed to return to The Bank of London after stepping down as a director this summer – one of two non-executives to resign between May and July.
Melis is a 19-year veteran of financial advisory firm Kroll, currently serving as its head of financial services compliance and regulation.
Existing board member and ex-Citigroup executive Mark Carawan has agreed to continue his role as chair of The Bank of London’s audit committee, having joined the bank in 2022.
The Bank of London has been under the microscope after Morning Wire first reported in September that HMRC filed a winding-up petition against its holding company just two days after founder Anthony Watson stepped down as chief executive.
Watson, who became a “senior adviser”, left the holding company’s board in October.
It emerged in September that the fintech he launched in 2021 at a $1.1bn valuation had tapped investors for an “immediate” cash injection in July to meet regulatory capital requirements.
The bank later secured £42m in an August fundraise led by Mangrove Capital, run by Mark Tluszcz – who sits on The Bank of London’s holding company board.
Following the raise, the bank embarked on a fresh round of job cuts, including at executive level, as part of a restructuring demanded by investors.
Tluszcz said on Thursday that the new appointments “demonstrate the commitment we, and the other investors that form the Mangrove-led new ownership group, have made to The Bank of London”.
“They underscore the priority we place on strong governance and oversight,” he added.
This year alone, The Bank of London has lost its chief technology officer, chief operating officer, chief information security officer, and head of compliance and money laundering reporting.
Watson, a former Barclays executive and LGBT campaigner, set up The Bank of London as a global clearing, agency and transaction bank for business customers.
The bank, which recruited its first client last April, claims to have more than £800m in deposits.
Its latest accounts show the holding company’s pretax losses widened to £41.8m in 2022, from £15.7m in 2021.