British banking newcomer Aldermore Group said first-quarter lending rose 7% as it added more customers including homeowners and small and medium enterprises.
The bank, founded by former Barclays executive Phillip Monks in 2009 with backing from Ana Cap, said it was on track to achieve targeted £1.4 billion of net new lending in 2015.
Net lending to customers rose to £5.1 billion for the three months ended March 31, compared with £4.8 billion a year earlier.
Total customer deposits in the period grew by 4% to £4.7 billion.
"Double-digit growth in SME deposits provides continued funding diversification as lending remains primarily funded by our dynamic online savings franchise," chief executive Phillip Monks said.
Most "challenger" banks are planning to operate online and use new technology allowing a quicker and cheaper platform.
British regulators and lawmakers are keen for banks such as Aldermore to challenge the dominance of the so-called 'Big Four', which provide nine out of every 10 business loans.
Shares in the SME-focused bank have gained 14% in value since their stock market listing in March.
