Kroo lands full banking license
The win for the bank comes a month after a £26m Series B close.
Image source: Kroo.
Digital bank Kroo has just obtained its full banking license in the UK before launching personal current accounts “in the coming months”.
The startup secured £26m in its Series B funding round earlier this month, which it says has gone a long way to supporting the new current accounts, which could come as soon as this summer.
After launching its prepaid offer in 2019 to ensure a “fully mobile experience”, the bank now has 23,000 customers, who will migrate to the new accounts for free.
With the full licence, the bank can offer its customers personal current accounts protected by the Financial Services Compensation Scheme up to £85,000, as well as overdrafts, loans and savings products.
“This represents a key step in our mission to create a bank that truly connects people financially, enables them to be better off financially, and plays its part in having a positive impact on the world,” said Kroo CEO Andrea. From Gottardo.
Kroo is the second bank to obtain a banking license with a personal current account since 2016 and the second, and places it in line with Monzo, Starling Bank and Atom Bank.
Many big fintechs have yet to get their full banking licenses, including Revolut, Klarna and Wise.
“[Obtaining a UK banking licence] is one of the things that will set us apart from most of our competitors in the fintech space, alongside our commitment to delivering innovative features and upholding the values that our customers can identify with,” he said. added.
The mobile-only bank markets itself primarily to 18-35 year olds, trying to “permanently change the relationship people have with money”.
It’s on a mission to plant one million trees and plans to dedicate 5% of its “sustainable profits” to social causes close to its customers’ hearts.