UK-based digital bank Kroo announced that it has been granted its full banking license by the Bank of England.
Kroo claims it is only one of two banking institutions to have been awarded a banking license with a personal current account since August 2016.
Kroo introduced its prepaid offering using innovative tech to ensure a “fully mobile” experience back in February 2019 and has acquired a customer base of around 23,000.
In the next few months, Kroo will aim to offer its customers the chance to migrate to Kroo’s new personal current account free-of-cost.
Kroo has reportedly completed an extensive range of prerequisites to obtain its license. such as:
- Demonstrating robustness of its processes and systems
- Compliance and risk management capabilities
- A viable business model
- Fit and proper directors and managers
- Adequate financial resources
As mentioned in the update, Kroo is now a “fully licensed” UK bank and will aim to provide its clients an FSCS protected personal current account after it launches in the next few months.
During the last few years, a relatively large number of Fintech firms have launched services, but few have been awarded banking licenses by the Bank of England.
This banking license essentially means that Kroo:
- Can offer depositors protection via the Financial Services Compensation Scheme up to £85,000
- Can provide its customers with overdrafts, loans and savings products
- Follows stringent banking regulations and very high security standards
Kroo was established back in 2016 when two minds came together with a goal to change the relationship consumers have with money.
Kroo has reportedly been built to make a positive impact on its clients, their communities and the overall environment.
They have reportedly taken part in a tree planting scheme with a goal to plant one million trees and have a board-level “social conscious” committee.
In the foreseeable future, Kroo intends to contribute around 5% of its sustainable earnings to the social causes its customer community care about.
“We are delighted to announce that Kroo has received its full UK banking licence. 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. 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.”