There’s a new bank on the block with digital company Kroo receiving the first licence issued by the Bank of England since early 2021.
The FinTech firm becomes just the second to get a green light since 2016, after completing a number of tasks to prove its robustness, compliance, risk management and leadership.
Kroo was launched in 2016 by Tim Brown and Nazim Valimahomed, and now boasts 23,000 e-money and card holders, as it looks set to launch personal current accounts by this summer.
Built on the vision of being a ‘social bank” to change people’s relationship with money, it will now be able to offer depositors protection via the Financial Services Compensation Scheme up to £85,000, and give customers with overdrafts, loans and saving products.
It is the first challenger bank to be given a Banking Licence since February 2021, and just the second since August 2016.
“This represents a key milestone in our mission to create a bank that truly connects people financially, enables them to be financially better off and plays its part in making a positive impact on the world”, said Kroo CEO Andrea De Gottardo,
“The bar to be granted a UK banking licence is exceptionally high and I am incredibly proud of the team and our work in achieving this. This is one of the elements that will set us apart from most of our competitors in the FinTech industry, alongside our commitment to deliver innovative features and champion values our customers can identify with.”