The Intermediary – April 2025 - Flipbook - Page 54
Q&A
StreamBank
After a rise to profitability in year one of trading,
The Intermediary speaks to Roz Cawood, MD
property finance, and Richard Armstrong, CCO at
StreamBank, as it celebrates its second birthday
What can you tell us about
StreamBank’s plans for this year?
managing costs and resources effectively. That has
been the biggest test for us.
Are you exploring the possibilities
Richard Armstrong (RA): We’ve successfully
established the bank and have been profitable
every month since February last year. Now,
we’re ready to step into the market with greater
confidence and scale up.
Fortunately, our shareholder takes a long-term
view, so there’s no pressure to chase rapid, highrisk growth. Instead, we’re taking a measured
approach – accelerating at the right pace to build
a loan book of £210m to £250m by the end of
next year.
The trust we’ve built is paying off, with strong
broker relationships and a growing base of repeat
customers.
Roz Cawood (RC): It’s been agreed that our
current strategy will remain largely unchanged.
The bridging market is where we need to stay and
establish ourselves. Towards the end of 2025, we’ll
be exploring adjacent markets that complement
our existing products and allow us to deepen our
relationships with current clients.
Why has StreamBank succeeded
where other entrants struggled?
RC: At the time we launched, several new banks
were either entering the market or signalling their
intention to do so, and some had a shaky start. A
few decided not to proceed after obtaining their
restricted banking licences.
The bridging market offers relatively high
returns, which is one of the reasons we chose this
product set. We’ve built a model that works for
us today, focusing on managing our people costs
while growing the business.
The challenge is market perception. Building a
£120m loan book is no small feat. If your service
fails, that’s a rookie mistake. The real challenge is
maintaining the service levels people expect while
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The Intermediary | April 2025
of artificial intelligence (AI)?
RC: The big five banks are adopting AI rapidly
because they want automation and straightthrough processing for ‘perfect’ customers. This
has created an opportunity for specialist lenders,
much like it did after the financial crisis.
The key for us is to strike the right balance
between AI-driven efficiency and human expertise.
AI encompasses many different tools, some of
which could help with heavy lifting and process
acceleration. We’ll explore these options and see
how they could enhance StreamBank, but we will
never be a front-runner in AI adoption. We are
technology-enabled and people-led.
Where are the biggest broker
opportunities this year?
RC: In a fast-moving market with high deal
volumes, it’s easy to focus solely on new business.
However, in a downturn, brokers need to leverage
existing client relationships to create new
opportunities.
By nurturing long-term client relationships,
brokers can establish a lifecycle approach,
supporting clients through different financial
stages while generating referrals from their
network. This strategy helps brokers future-proof
their business, ensuring stability even when
market conditions fluctuate, rather than relying
solely on the next big development deal.
What are your expectations for the
regulated bridging market?
RC: Market activity will have been heavily
influenced by the Stamp Duty deadline on 31st
