Kroo launches 2% interest current account

By Amelia Isaacs on Monday 5 December 2022

Digital Banking

The digital challenger aims to get 500,000 new customers by the end of 2023.

Kroo launches 2% interest current account
Image source: Andrea De Gottardo/Kroo.

 

Digital bank Kroo is hoping to help Brits save more with the launch of a two per cent interest current account.

Aimed at Gen Z and millennials, the ‘2&2 model’ will give two per cent AER on deposits up to £85,000, and the challenger will plant two trees for every new customer that opens a current account.

One of just three banks to be granted a full banking licence since 2016, Kroo CEO  Andrea De Gottardo said this not only sets them apart from its fintech competitors, but also gives it a chance to “change banking for the better”.

“Building a fully licensed bank from scratch is exceptionally hard and requires a huge amount of time, resilience, and passion. And rightly so,” he said.

“We have created a bank that breaks the standard profit extraction logic of the incumbent players and is focused on genuinely having our customers’ backs,” De Gottardo added.

Kroo currently has just 21,000 pre-paid card holders, having secured its full banking licence in June just a few weeks after closing a £26m Series B round.

But the bank has ambitious plans.

De Gottardo told The Times that it aims to gain one million customers for the new current account within the next five years

The plan is to do this through a combination of attractive interest rates and social media advertising on TikTok and Instagram, seemingly following in the footsteps of Monzo.

“Mainstream banks have typically misunderstood the needs of the younger generation, who are tech savvy, with high expectations and strong values,” Kroo chief operating officer Angela Wakelin, Chief Operating Officer said.

“I’m extremely proud to be part of a bank that recognises the specific needs of this younger audience and will deliver products that support their fast-paced lifestyles.”

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