Kroo bank now has a banking license from the Bank of England
The UK challenger Kroo now becomes the second bank to attain an authorized bank status since the start of 2021. The status gives it a leeway to build a social financial institution from the beginning of this year.
The bank now holds an ‘authorized with restrictions’ ranking. The new status gives the firm one year to attain the stipulated requirements as listed by the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA).
The bank can only hold £50,000 in deposits until it meets all the requirements.
Earlier this month, the UK challenger bank raised £17.7 million during funding (Series A). The round was steered by Rudy Karsan, the founder of Karlani Capital. The bank looks to get the money-making idea less awkward via innovations such as bill-splitting.
The company will utilize the funds raised to grow its team in its mobilization phase as it looks to launch in early 2022.
In May, Kroo bank partnered with Bugni Labs, a digital banking provider based in London to boost its credit engine.
The company will also donate a percentage of its profits to social causes. Already, a tree planting scheme that aims to plant 1 million trees has been launched.
We’ve reported that Philippines’ first private neobank launches its physical debit card.