Larkin, 43, from Dublin, starts the role on August 1 and joins from the commercial banking division of Lloyds Banking Group. He was previously managing director of Lloyds TSB’s consumer banking and lending arms.
Prior to this, he was managing director of personal lending at HBOS, and held the chief financial officer position at Virgin Money Group.
At Lloyds he will head up the business that provides asset based finance facilities and complementary products.
These include invoice finance, asset based lending, hire purchase and leasing, the enterprise finance guarantee scheme, debtor insurance, supplier finance and payroll services.
Featherstone has moved to become global chief executive of Lloyds’ competitor Bibby Financial Services.
He said: “The dynamic nature of invoice finance means it continues to grow in popularity and outperform the business funding market.”
Larkin highlighted figures released last month by the Asset Based Finance Association, the trade body, which revealed that total advances grew by 9 per cent year-on-year.
The average turnover of clients using this form of funding also outperformed the market, increasing by more than 20 per cent from the same time last year.
Larkin added: “The fact that Lloyds TSB Commercial Finance’s products and services continue to go from strength to strength was one of the key reasons I wanted to join the team, and I’m looking forward to helping further drive expansion in the sector.
“There is a strong momentum in the business and we have many key initiatives and developments in the pipeline, which presents exciting opportunities.”
John Maltby, who heads up commercial banking for Lloyds Banking Group and is chairman of Lloyds TSB Commercial Finance, said: “Business funding is a top priority for Lloyds Banking Group and asset based finance is and will continue to be a key part of our funding proposition for customers.
“The appointment of a new managing director of the business was therefore a decision we considered carefully, and Ian’s impressive credentials and broad experience are an excellent fit for helping to drive further growth for Lloyds Banking Group in this market.”