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

Brokeree Solutions Wins the “Best Emerging Fintech” Award

2022 has become, for Brokeree Solutions, a time of new inventions and developments. We are pleased that the industry has appreciated this emergence of new technologies

Metaverse Gaming NFT

Glip raises $2.5 million to develop class-A Web3 games ecosystem

Web3 game discovery & wallet app, Glip has raised an additional $2.5 million in new funding from a range of investors, bringing the total investments it received to $6 million thus far. 

Inside View

Black Friday and trading: OctaFX presents the results of its client survey

What are the attitudes of traders toward the Black Friday period? What are their trading patterns during the shopping season? OctaFX asked its clients all the most important questions.

Retail FX

Dukascopy warns of clone website dukascopyd.swisbank

Switzerland’s forex bank and broker, Dukascopy has alerted the market and consumers to a clone of its authorised brand. The website, which remains active, is impersonating the genuine investment firm in an attempt to deceive people into handing over their hard-earned money.

Crypto Insider

A Step-by-Step Guide on How to Get a Crypto Wallet

The crypto ecosystem is very much based on the existence of a crypto wallet, as it is the gateway that allows users to securely store their assets with full transparency and protection.

Digital Assets

Finery Markets raises $5.5m to expand multilateral institutional marketplace for OTC crypto

“Running the first multilateral institutional marketplace in the crypto space, we aim to establish best practices across trading, risk management and operational standards for crypto.”

Institutional FX

TT adds products listed on SGX, ASX, HKEX, JPX to algo execution suite

Trading Technologies International, Inc. (TT) has added four major Asia-Pacific (APAC) exchanges to marketplaces supported by TT Premium Order Types.

Digital Assets

IG’s tastyworks, Interactive Brokers, Robinhood, among 13 investor partners of Cboe Digital

Cboe has completed the syndication of minority equity interests with a group of thirteen firms becoming investor partners in the Cboe Digital business. The list of investors include retail and institutional intermediaries, liquidity providers, and brokers. 

Retail FX

FP Markets adds exotic FX pairs from Africa, LATAM, Asia to MT4/5 offering

“As a top-tier broker, our objective is always client satisfaction. Therefore, the additional currency pairs, which can be traded either through our MT4 or MT5 trading platforms, offer investors choice and flexibility when trading in the currency market”.

<