Its application has been approved by the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA) and first deposits are expected to be taken in the summer next year.
Chief executive Scott Maybury told investors on Wednesday: "This is an exciting and transformational event in the history of the group."
Initially, the bank will support the lender's specialist sectors of motor finance and SME (small and medium enterprise) asset finance, but once established, it will consider extending its range of financial products, it said.
"Unusually for a new bank entrant, we are not a start-up operation and we will be launching from the foundation of an established, focused and strongly profitable operation," said Maybury.
"This provides the ideal platform for further growth and our continued success.
"A diversified source of funding will not only allow us to scale up our loan book significantly, but also mitigates risk in times of economic uncertainty. We look to the future with great optimism."
It means the firm is now authorised as a bank but with certain restrictions and enters a mobilisation period of up to 12 months.
The bank can apply for restrictions to be lifted once a number of actions are made, including developing an enhanced governance framework and developing new technology platforms.
Shares added 5.17% to 30.5p in early deals.