Kroo rolls out 2 percent interest current account

The new launch, dubbed the ‘2&2 model’, is aimed at Gen Z and millennials. It will give two percent AER on deposits up to GBP 85,000, and the challenger has announced that it will plant two trees for every new customer that opens a current account. Kroo reportedly is one of just three banks to be granted a full banking licence since 2016, AltFi states. 

According to the company’s CEO, ‘building a fully licenced bank from scratch is exceptionally hard and requires a huge amount of time, resilience, and passion’. He continued to say that the digital bank seeks to stay away from the ‘standard profit extraction logic’ of the traditional banks and instead focus on providing to customers’ needs. 

Kroo currently has 21,000 pre-paid card holders, having secured its full banking licence in June 2022, soon after closing a GBP 26 million Series B round. However, AltFi reports that the bank has ambitious plans.

In an interview for The Times, Kroo’s CEO declared that the company aims to gain one million customers for the new current account within the next five years. It plans to do this by supposedly following in Monzo’s footsteps, with the plan being to do this through a combination of attractive interest rates and social media advertising on TikTok and Instagram.

Kroo’s COO declared that ‘mainstream banks have typically misunderstood the needs of the younger generation, who are tech savvy, with high expectations and strong values’. Reportedly, the digital bank ‘recognises the specific needs of this younger audience and will deliver products that support their fast-paced lifestyles’, AltFi concluded.

More about Kroo

In August 2021, Kroo took the stage when it announced the closing of its Series A funding round, where it raised GBP 17.7 million. Soon after, the neobank received a UK banking licence with restrictions from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

As mentioned before, in June 2022, Kroo closed its most recent funding round, raising GBP 26 million. Soon after this announcement, the digital bank received its full banking licence by the Bank of England. 

Last but not least, in July 2022, Kroo partnered with ClearBank to provide access to all UK payment schemes as well as accounts for its operational funds.