The "Bank of Dave," a peer-to-peer crowdfunding model akin to Zopa.com, has emerged as a groundbreaking initiative in the financial landscape. Founded by Dave Fishwick, a 41-year-old entrepreneur from Burnley, the bank aims to bridge the gap between savers and local businesses needing capital. Despite facing regulatory challenges, Fishwick's venture has quickly gained traction, reaching its £25,000-a-week lending target. The bank currently operates on a waiting list system due to high demand, underscoring its popularity among local customers.
Dave Fishwick, who amassed his wealth as Britain's leading minibus supplier, has now turned his focus towards reshaping the traditional banking system. The "Bank of Dave" allows savers to lend amounts ranging from £50 to £1,000 with a 30-day notice or up to £15,000 with one year's notice. It offers attractive interest rates of 17.4% to 29% on an APR basis. However, it's important to note that this bank is not covered by the Financial Services Compensation Scheme. Savers depend on Fishwick's personal guarantee for their deposits.
"They told me that if I use the word deposit or say I'm a bank then I will go to prison." – David Fishwick
Despite regulatory hurdles, Fishwick remains undeterred, driven by his belief that someone must challenge the status quo of traditional banks. His business model connects savers with local enterprises in dire need of funds, fostering economic growth within his community.
"This is not about trying to be bigger than the banks or about lining my pockets. Someone, somewhere has to take the first step and take them on," – David Fishwick
The bank has already garnered hundreds of satisfied customers, and Fishwick's vision extends beyond Burnley. He aspires to establish similar independent savings and loans institutions across the UK, empowering communities through localized financial support.
"Other people up and down the country can do the same as me. We could have something like Burnley Savings and Loans in every community. You just need like-minded individuals to come together." – David Fishwick
Fishwick's personal experiences have shaped his resolve and determination. Having faced bullying during his youth, he learned early on the importance of standing up against adversity.
"I was bullied when I was 12 to 13 but then I started to fight back and learnt you can beat the bullies." – David Fishwick
His banking model operates on straightforward principles: savers lend their savings directly to borrowers, who are then accountable for repaying the loans. Burnley Savings and Loans manages the administrative tasks and thoroughly vets loan applicants.
"You lend your savings to a borrower, and that borrower then becomes responsible for the paying of the loans. Burnley Savings and Loans does the administration around this and is responsible for vetting applicants for loans." – David Fishwick
Despite its success, the "Bank of Dave" faces skepticism from some industry experts who question Fishwick's credentials in the banking sector.
"if you went to the right school and had the right parents you might be considered a fit and proper person to go into the banking industry… there is no evidence you are." – Anonymous City expert
However, Fishwick remains unfazed by such criticisms. His primary motivation lies not in accumulating wealth but in making a tangible difference in people's lives.
"This is not about adding more zeroes to my net wealth. After all, you can only drive one car at a time or go on one holiday at a time. Sometimes you just have to stand up and make a difference." – David Fishwick
Fishwick's endeavor has become a beacon of hope for local businesses starved of cash and for savers seeking meaningful investment opportunities. His approach provides an alternative financial solution that promotes community growth and solidarity.