Hampden & Co, the UK's first new private bank in 30 years, has finally opened its doors in Edinburgh's Charlotte Square.

Created by veteran banker Ray Entwistle, the former chairman of Adam & Company, the bank has taken five years to bring to fruition after getting itself first in the queue to obtain a banking licence under the government's new streamlined process.

It has raised almost £50million in capital from 250 shareholders, though many are known to have raised concerns about the prospect of a yes vote in last year's referendum. The bank has a second office at St James' in London

Hampden says it will deliver a traditional private banking service "fully focussed on client needs and not product sales targets", with a team of over 50 qualified bankers and support staff headed by chief executive Graeme Hartop, who led Scottish Widows Bank successfully for nine years.

Mr Entwistle said: 'There is strong demand for a new private bank which delivers the right quality of service with long term continuity of personnel and speed of decision-making. Over 250 shareholders have come to the same conclusion."

Mr Hartop added: "The timing for launch is ideal as we continue to experience an improved economic environment, strong client demand and a favourable competitive landscape as a large number of the existing banks continue to deal with significant legacy issues."

He added: "Setting up a bank was always going to take time, and the amount of change taking place in the regulatory environment was a big factor." The bank expected to break even in three years, Mr Hartop said.

Mr Hartop admitted that the referendum had created uncertainty among investors which was "not helpful" - echoing a recent comment by Mr Entwistle that the general election outcome had renewed the concerns of many businesspeople.

Mr Entwistle, who led Adam & Co also in Charlotte Square from 1993 to 2010, unveiled the launch of holding company Scoban in January 2011.

He had hoped to be opening in both capitals within 18months but by mid-2012 had only raised only half of an initial £8m fundraising target.

Scoban played a key role in the government's consultation over a new streamlined process with lighter capital requirements, under the new Prudential Regulation Authority, which saw the bank, then felicitously renamed in a tie-up with financial services group Hampden, given the green light for a 'mobilisation process' in early 2014.

Hampden was then able to raise the bulk of its funds and invest in the critical IT platform. Final clearance to open for business only arrived at the beginning of June.

The company reduced its need for capital by not applying for a wealth management licence, and has committed itself to the training of young bankers.