Kroo, the Digital Bank, receives banking license in the UK

By Joy Dumasia

Digital bank Kroo has received its banking licence and is now authorised with restrictions by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), marking the company’s entrance into the final stage of the UK financial regulators’ rigorous licensing application process.

The bar to obtaining a UK banking licence is high, with a massive gap between the number of firms interested in becoming a bank and those that subsequently gain authorisation. Kroo is one of only two new banks to be authorised in 2021 so far.

The authorisation with restriction means that Kroo can accept deposits up to £50,000 in total. This ‘mobilisation’ phase allows new banks to finalise their systems, infrastructure and controls ahead of the public launch, which for Kroo is expected in early 2022, once the full banking licence is granted.

Kroo has assembled a new board of directors, including financial services veteran Cameron Marr as chair, corporate governance and financial control specialist Penelope Kenny as senior independent director, the seasoned tech entrepreneur Rudy Karsan as representative of the shareholders and risk and compliance expert Serena Joseph to lead its risk committee.

Andrea De Gottardo, CEO of Kroo, said: “It is incredibly exciting to finally be a bank that is authorised with restrictions. Very few firms in the UK get to this point, and this represents a huge milestone for the entire team. We’ve worked hard over the years to build a bank our customers will not only love but can rely on and trust. Entering mobilisation brings us one giant step closer to becoming the greatest social bank on the planet.”

Recently, IBS Intelligence reported that Kroo raised £17.7 million in a Series A funding round led by tech entrepreneur and founder of Karlani Capital, Rudy Karsan. The capital raised will be used to mobilise the bank ahead of its launch in early 2022.