A bank set up in the 1950s to support small businesses has been sold to a US group.
Birmingham Bank, which is based at the Mailbox and provides consumer and commercial loan and deposit products, has been acquired by Better.
The bank can trace its roots back to 1955 when the National Federation of Ironmongers acquired a credit licence to operate a hire purchase scheme to compete with the terms offered by large department stores.
Its growth has been fuelled by demand from members in new vehicle finance and investment in equipment for their businesses.
New York-based Better was founded in 2016 and is a digital-first homeownership company whose services included mortgage, real estate and homeowners insurance.
Its UK arm is headquartered in London and it operates both domestic mortgage advisory and lending services. Last year, Better purchased a minority interest in Birmingham Bank and it has now acquired all of the remaining shares.
It said it was planning to create 40 jobs in Birmingham over the next three years following the buyout in fields such as business development, savings management, marketing, operations, finance, risk management and IT.
The bank will now assist Better's plan to increase its residential mortgage lending across the UK and grow its base deposits to consumers and SMEs.
Better's founder and chief executive Vishal Garg said: "Better's global mission is to make homeownership cheaper, faster, easier and simply much better for all.
"We are excited to bring Birmingham Bank into the Better family and look forward to helping it grow its exposure to residential lending business across the United Kingdom.
"Along with our UK mortgage advisor and mortgage lender, we have positioned Better to deliver a vertically integrated platform to help consumers across the market achieve their home ownership dreams."
Birmingham Bank chief executive Matt Smith added: "Better's acquisition of the bank will bring to life our strategy and deliver a compelling proposition and service.
"We look forward to supporting our loyal customer base by continuing to offer our deposit and SME finance product ranges and welcoming many new customers in the coming months and years."
West Midlands Mayor Andy Street said: "This investment reinforces the West Midlands' strong track record of attracting US investment and Better will be an extremely valuable addition to what is the UK's largest regional financial and professional services cluster.
"With an established history in the city, we're also very proud that Birmingham Bank will keep its original name as it helps future generations of local people to get onto the housing ladder."
Better's vice-president for Europe Michael Lamont will join the board of Birmingham Bank, subject to regulatory approval. The terms of the buyout are not disclosed. UK law firm TLT acted for Better in the deal.
