Tandem, a digital banking startup led by Azimo founder Ricky Knox and Capital One's Matt Cooper, has secured a license from the BofE, paving the way for it to join the scrum of challengers taking on Britain's high street lenders.
The new venture joins the likes of Atom, Starling, Mondo, Secco and CivilisedBank in the quest to build mobile-centred alternatives to the small collection of giants that have dominated British banking for decades.
Knox, who co-founded money transfer service Azimo and Cooper, who co-founded US bank Capital One, have had no trouble attracting backers for their new venture, raising close to £100 million in funding, according to the Financial Times.
When it launches next year, the bank will offer current accounts, credit cards, savings, and loans through mobile and web, backed up by a call centre. As with many of its contemporaries, Tandem is stressing its commitment to helping customers manage their finances and save money from their phones.
Says Knox: "We are very excited to take full advantage of today's digital technology, however, we are far more than a digital bank - above all, we are here to build a good bank. What does that mean? For too long, traditional banks have made money at their customers’ expense - for example by letting them borrow long term on credit cards, or not advising them to move money into newer savings products carrying higher interest rates.
"We want to build a bank that challenges this model by putting our customers’ interests first and by working in Tandem with them as their partner in money. It means we can be a bank that truly champions its customers, and we plan to prove it at every point."