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

Industry News

Witness the intensifying competition as UF AWARDS MEA 2024 nominations persist!

The countdown is on, with less than two weeks remaining to nominate outstanding brands for this prestigious event, culminating in the highly anticipated ceremony during iFX EXPO Dubai 2024 in January.

Retail FX

Saxo Bank’s FX volumes rise despite overall lackluster turnover

As many currency markets saw a relatively active period in November, Copenhagen-based Saxo Bank reported its monthly metrics, which showed a moderate rebound month-over-month.

Market News

S&P 500 Rally Faces Abrupt Halt: Analysts Assess Market Signals

The S&P 500, a benchmark index tracking the stock performance of 500 of the largest US companies, has ignited a flurry of discussions among financial analysts due to its recent performance.


TraderEvolution at FMLS:23: Andrew Saks on how brokers can go multi-asset

In an insightful interview with FinanceFeeds, Andrew Saks of TraderEvolution Global discussed the industry’s evolution towards multi-asset trading. He highlighted challenges in integrating diverse asset classes and the importance of API connectivity. Andrew also touched on emerging trends in options, futures, and fixed income, underscoring the need for adaptable trading technology in today’s dynamic market.

Market News

Powell’s Pivot Navigating the Dynamics of USD, Interest Rates, and Market Expectations

Federal Reserve Chair Powell has signalled a decisive end to the cycle of interest rate hikes for the USD.

Market News

Inflation Concerns, Policy Divergence, and Market Sentiments in the UK

Amidst the recent global revaluation of inflation, Megan Greene, a steadfast MPC member, advocates for a proactive stance. Addressing concerns in Leeds, she calls for an upward adjustment of the Bank of England’s policy rate, cautioning against the potential risks of a too-conservative approach. Greene questions the assumed restrictiveness in the current monetary stance, suggesting it might be less robust than perceived, especially in scenarios of persistent inflation.

Digital Assets

JPMorgan’s stablecoin ventures into interbank transactions

JPMorgan Chase & Co.’s proprietary digital token, JPM Coin, is set to expand its use case by facilitating interbank transactions on Partior, a blockchain ledger developed in collaboration with DBS Bank, Temasek, and Standard Chartered.

Retail FX

Interactive Brokers’ client base surges past 2.5 million

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.89 million daily average revenue trades, or DARTS, in November 2023 compared to 1.93 million transactions in the prior month. The figure is three percent lower on a yearly basis, and also dropped slightly from a month earlier.

Executive Moves

Andrew Gibson launches TimberFX brokerage brand in Cyprus

After nearly two years at Tavira Securities as Head of Product Development, industry veteran Andrew Gibson is launching a new FX brokerage business based out of Cyprus.