Kroo receives restricted banking license from FCA and PRA

Karthik Subramanian

The Neobank startup Kroo has announced that it has received a restricted banking license from the Financial Conduct Authority and the Prudential Regulation Authority.

This restricted banking license gives it the authority to collect deposits of up to £50,000 in total and also offer other smaller financial services for its customers. This phase has been given to the company so that it can test out its systems and its infrastructure and make sure that it will be able to handle bigger deposits, more features, and a high number of consumers when it switches to the final banking license. This is expected sometime in the next year once this testing phase is complete.

Andrea De Gottardo, CEO of Kroo, said, “It is incredibly exciting to finally be a bank that is authorized with restrictions. Very few firms in the UK get to this point and this represents a huge milestone for the entire team.”

The neobank has raised $24.5 million just a couple of weeks back as it looks to expand and grow across the European region and also add more features to its application. It is expected that as it grows to other regions, it would need to apply for a variety of licensing and regulation in those regions as well for which a strong base would be needed and this funding would be put to good use for these activities.

The bank had started off its services with a simple prepaid card and an app which the users can use to make payments, add friends, track spending, etc. which the users have been finding very useful so far, which is one of the reasons for its growth over the last couple of years. The bank also seeks to slowly wind down its prepaid cards as it switches to the full banking license and when that begins to happen, it seeks to transfer its existing users to the new accounts. Once it gets the full banking license, it will be able to offer savings and current accounts and other financial services that any bank would be able to offer.

Neobanks are expected to slowly and steadily replace the traditional banks and the legacy systems in the coming years as the world becomes digitalized and the financial services start getting delivered through mobile apps and the internet which is what the latest generation of users prefer.

Read this next

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance

Executive Moves

Parameta appoints Head of Benchmark and Indices with a focus on ESG and rates

The firm said building out its benchmarks & indices offering will now be a core priority, with a particular focus on the ESG and rates space.

Digital Assets

WunderTrading brings automated crypto trading to United States

“Among developed countries, Americans are the heaviest users of cryptocurrencies, with 13% having invested in cryptocurrencies over the past year.”

<