Vive, a newly established UK-based digital bank, has reportedly acquired a banking license with certain restrictions from the Bank of England (BoE).
The new digital bank aims to provide personal loans and a fixed-rate savings account. It will be launching with an Open Banking-based funds management app.
Vive’s management says the bank is planning to target the underserved market of clients who may not have access to credit at affordable costs.
Acquiring a banking license with restrictions, referred to as “mobilization,” is one of the first critical steps towards a new bank becoming fully operational. After a bank is allowed to offer a comprehensive range of services, it can officially start doing business, however, there might still be a few restrictions like the amount taken for deposits.
Vive is on track to be in mobilization for around a year before it is given full authorization.
Nick Anthony, CEO at Vive, said that obtaining the license is “a significant milestone” to the banking challenger’s goals which include providing “simple, straightforward products, built for a digital world.”
“Vive is designed for people who want greater choice than that offered by their current bank. Our prospective customers value service, speed and transparency but also want the best rates available to them.”
In September 2019, Vive’s management confirmed that the company would be using Starling Bank partner Bottomline Technologies for quick payment processing.
Vive is planning a full launch during the second quarter of this year and is currently requesting the public to beta test its platform.