Paragon Banking has appointed Fiona Clutterbuck as chairman.
She replaces Bob Dench, who was appointed chairman of the Co-operative Bank in March, but stepped down as chairman and ceased to be a director of Paragon on the same day as Ms Clutterbuck’s appointment.
Ms Clutterbuck said: "I am delighted to be appointed as Paragon's chairman. Last year saw a restructuring of the group's businesses which represented a major milestone in our strategic development.
"It is an exciting time for Paragon as the group continues to evolve as a diversified banking group."
The new role means Ms Clutterbuck, who has been a non-executive director of Paragon since 2012, ceases to be the company's senior independent director and a member of the audit committee.
During her career Ms Clutterbuck has been managing director and head of financial institutions advisory at ABN AMRO Investment Bank, managing director and global co-head of financial institutions group at HSBC Investment Bank and was a director at Hill Samuel Bank.
She is also a non-executive director of Hargreaves Lansdown.
Once regulatory approval has been obtained, the board will announce her successors as senior independent director and chairman of the remuneration committee.
Nigel Terrington, chief executive of Paragon, said: "We carried out a thorough and independent appointment process and it was clear that Fiona was the best candidate to become Paragon's chairman.
"She has a strong knowledge of Paragon, having been on the board since 2012 and has a wealth of financial experience, having held senior positions at leading UK and international banks.
"We have been immensely lucky to have been chaired by Bob for the last 14 years but he leaves the company in excellent health and we look forward to what we know will be Fiona's significant contribution to our future."