NatWest provided up to £250 million in funding to Amplifi Capital (UK), a now insolvent consumer lender that went into administration in June after facing difficulties adapting to new consumer credit regulations. Amplifi, which operated under the Reevo Money brand and offered personal loans to so-called “near-prime” borrowers, was indirectly financed by NatWest through a loan note agreement involving a third party, Castor Financing.

Amplifi targeted consumers who might otherwise have limited access to credit from traditional high-street banks, offering unsecured personal loans described as “accessible and affordable.” In addition to direct lending, Amplifi also operated as a broker through its My Community Finance division, which introduced customers to two majority-controlled credit unions, My Community Bank and Castle Community Bank.

The company’s financial challenges became apparent in its accounts for the year ending March 2024, where it reported a small loss after previously posting a £5.5 million profit. Amplifi recorded impairment charges affecting its investments in the credit unions, attributing these write-downs to changing market conditions. An independent auditor raised concerns about the company’s ability to continue as a going concern in its accounts signed off in June 2025.

Amplifi Capital entered administration in June, with insolvency firm Interpath managing the process. According to filings, Castor Financing acquired loans from Amplifi Capital and subsequently sold loan notes to NatWest. Company filings for the year ending March 2025 indicated a loan note facility of up to £100 million, which was reportedly increased to £250 million by March 2025.

This development adds to a growing awareness of mainstream banks’ exposure to non-bank lenders, often referred to as “shadow banks.” Amplifi’s situation follows the collapse of Market Financial Solutions (MFS), a mortgage lender backed by multiple financial institutions including Barclays and Apollo’s Atlas credit business. MFS is currently under investigation by the Financial Conduct Authority (FCA) amid allegations of a £1.3 billion fraud, which its founder, Paresh Raja, denies.

Regulators including the Bank of England are scrutinizing the broader risk posed by defaults among non-bank lenders, as these entities often engage in higher-risk lending that regulated banks are encouraged to avoid. The FCA has stated that existing Amplifi loan agreements remain valid despite the administration but added that the company is no longer able to issue new loans.

At the time of publication, NatWest had declined to provide details regarding the size of its exposure to Amplifi and related entities.