Kroo lands full banking licence

Digital bank Kroo has just won its full UK banking licence ahead of plans to launch personal current accounts “in the coming months”.

The startup secured £26m in its Series B funding round at the start of the month which it said went a long way toward supporting the new current accounts, which could come as early as this summer.

Having launched its prepaid offering in 2019 to ensure a “fully mobile experience”, the bank has now racked up 23,000 customers, which will migrate to the new accounts for free.

With the full licence, the bank can offer its customers Financial Services Compensation Scheme-protected personal current accounts for up to £85,000, as well as provide overdrafts, loans and savings products.

“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,” Kroo CEO Andrea De Gottardo said.

Kroo is the second bank to be granted a banking licence with a personal current account since 2016 and the second, and puts it among the ranks of Monzo,Starling Bank and Atom Bank.

Many larger fintechs have still to gain their full banking licences, including Revolut,Klarna and Wise.

“[Obtaining a UK banking licence] 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,” he added.

The mobile-only bank markets itself as primarily for 18 to 35-year-olds, trying to “change the relationship people have with money for good”.

It has a mission to plant one million trees and plans to contribute five per cent of “sustainable profits” to social causes its customers care about.