Today, Kroo Bank announces its deposits have surpassed £1 billion, and at a time when interest rates are dropping, has paid over £51m in interest directly back to customers’ current accounts. This comes less than two years after launching its first current account, cementing its place among the challenger banks that are shaping the UK’s pioneering fintech industry. Despite a challenging year for FinTechs, this milestone demonstrates Kroo is a British business success story proving the UK is still a place where businesses can thrive.                          

As of September 2024, a staggering £253bn*** sit in accounts that are non-interest-bearing – so it’s no coincidence that the UK’s four biggest banks reported soaring profits of £44.2bn** at the expense of their customers (end of FY24).

As the Bank of England cuts interest rates again, choosing a bank that maximises your money is more important than ever. Kroo is challenging the banking industry’s interest rate inertia that has kept too many people stuck in a bad banking relationship for too long. Its commitment to making customers richer – by giving them more time, money, and happiness – has helped build trust with its nearly 190,000 customers.

Kroo recognises the urgent need to redefine the public’s perception of banking, particularly as the industry grapples with lower customer trust. Through its product offering, Kroo Bank wants to prove it is possible to offer a customer-focused product, without compromising on quality or security – this milestone shows what can be achieved.

Having put £51.2m of the base interest rate back into customers’ pockets – paid directly into their current accounts – Kroo has consistently moved interest rates in line with the Bank of England. Kroo offers a tracker interest rate at a highly competitive 3.85% AER on its current account, set at 1.1% below the base rate.

Andrea De Gottardo, CEO of Kroo, says: “Hitting £1bn in deposits shows our customers believe banks have been letting them down, and that it’s time to demand better. People put their money where they trust it will be safe, and I’m incredibly proud to see that 190,000 customers trust us with over £1bn of their money.

The UK has unparalleled finance infrastructure, making it a fantastic place to build fintech. However, the industry standard of hypergrowth at any cost has often come at the expense of security.

“This is where Kroo is different. We want to prove to our customers – and the industry – that good banking doesn’t mean having to compromise on security, trust or quality. Success for us doesn’t just mean reaching new milestones with our customers, but a whole industry committing to doing better.”

Nazim Valimahomed, Co-Founder of Kroo says: “We built Kroo because banks can do so much more to enrich the lives of their customers. We see a strong need to redefine the relationship people have with their bank by surrounding them with choices that make them financially and emotionally better off.

“We’re proud to see our mantra of making people richer resonating so well with our customers. We’re excited to continue our mission to show UK banking customers they should expect more from their financial institutions and provide an option that people can love and trust.”