Company Announcements

Secure Trust Bank PLC

LEI: 213800CXIBLC2TMIGI76

25 November 2021

For embargoed release at 07.00am

Secure Trust Bank PLC ("STB" or the "Company")

Secure Trust Bank acquires AppToPay Digital Buy Now Pay Later technology platform company

Secure Trust Bank PLC ('STB') is pleased to announce that it has agreed to acquire AppToPay Ltd (AppToPay), owner of a proprietary technology platform to support its planned entry into the digital Buy Now Pay Later ("digital BNPL") market.

STB, through its V12 Retail Finance business, is already a leading provider of point-of-sale retail finance, with a network of more than 1,400 retailers and more than 840,000 consumers, and currently specialises in providing larger, longer-duration loans[1]. The acquisition of AppToPay positions STB to enter the highly complementary, fast-growing digital BNPL market[2] focused on smaller sized, shorter-duration loans.

AppToPay Ltd is authorised by the Financial Conduct Authority and therefore completion of the acquisition, which is subject to regulatory approvals, is expected around Q1 2022. The acquisition will allow STB to accelerate its entry into the digital BNPL market, reducing the product development time required. STB plans to integrate the AppToPay platform with its existing technology capabilities to offer a regulated digital BNPL product. This will enable STB to introduce this new digital BNPL offering across its existing retailer network alongside its current retail finance products through a new brand, AppToPay, with a launch planned for H1 2022.

Although AppToPay is being acquired for a small amount it represents a significant step forward in STB's strategy to seek attractive returns in niche segments and scale its core businesses, both organically and through value-accretive M&A.  AppToPay is expected to scale over time and will become an important incremental offering for the V12 Retail Finance platform in the medium term.

David McCreadie, Chief Executive Officer of Secure Trust Bank, said:

"I am delighted to announce the acquisition of AppToPay. V12 Retail Finance has already built a strong, established position in point-of-sale retail finance, thanks to its strong relationships and embedded technology with many of the UK's leading retailers and extensive market knowledge. This transaction is a natural next step for us, opening up attractive new opportunities for our existing customers and providing us with access to a new, fast-growing specialist lending market.

"The credit market is undergoing a structural transformation; digital BNPL has already been welcomed by a large number of consumers in the UK and is fast becoming established as a mainstream alternative payment option due to its ease of use and interest free pricing. We have no doubt that this market will continue to grow rapidly, and that STB is very well-placed to capitalise on the opportunity."

Forward looking statements

This document contains forward looking statements about the business, strategy and plans of STB and its current objectives, targets and expectations relating to its future financial condition and performance. Statements that are not historical facts, including statements about STB's or management's beliefs and expectations, are forward looking statements. By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. STB's actual future results may differ materially from the results expressed or implied in these forward looking statements as a result of a variety of factors. These include UK domestic and global economic and business conditions, risks concerning borrower credit quality, market related risks including interest rate risk, inherent risks regarding market conditions and similar contingencies outside STB's control, the COVID-19 pandemic, expected credit losses in certain scenarios involving forward looking data, any adverse experience in inherent operational risks, any unexpected developments in regulation or regulatory, and other factors. The forward looking statements contained in this document are made as of the date of this document, and (except as required by law or regulation) STB undertakes no obligation to update any of its forward looking statements.

About the Company:

Secure Trust Bank is an established, well‐funded and capitalised UK retail bank with a 69 year trading track record. Secure Trust Bank operates principally from its head office in Solihull, West Midlands, and had 940 employees (full‐ time equivalent) as at 30 June 2021. The Group's diversified lending portfolio currently focuses on two sectors:

(i)            Business Finance through its Real Estate Finance and Commercial Finance divisions,

(ii)           Consumer Finance through its Motor Finance, Retail Finance and Debt Management divisions

Secure Trust Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Secure Trust Bank, PLC, One Arleston Way, Solihull, B90 4LH.