First cohort of banks joins UK regulators' Scale-up Unit

The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have accepted six firms into the first cohort of their joint Scale-up Unit: Allica Bank, ClearBank, Monument Bank, Nottingham Building Society, OakNorth Bank, and Zopa Bank.

These firms will receive tailored support to navigate the regulatory landscape, aiding them in developing new products, attracting customers, and expanding into new markets.

PRA and FCA officials will engage directly with these firms, both collectively and individually, over the coming months.

This direct interaction aims to enhance the regulators' understanding of the scaling process, with the ultimate goal of refining regulatory processes for the entire financial sector.

Charlotte Gerken, Executive Director for UK Deposit Takers at the PRA, stated: "Welcoming the first cohort to our Scale-up Unit is an important milestone.

It shows our commitment to helping firms grow in a sustainable way that benefits the financial services sector and wider economic growth.

" The initiative underscores a commitment to fostering innovation while ensuring stability.

The Scale-up Unit, announced last year, aims to improve regulatory processes for the entire sector, fostering expansion and innovation.

Regulators will invite expressions of interest for a second cohort later this year and offer ongoing support to smaller, fast-growing insurers based on specific criteria.

The FCA will further enhance its offer by opening expressions of interest for a new solo regulated Scale-up cohort in the Spring, targeting firms from a wider range of sectors.

Jessica Rusu, Chief Data, Information and Intelligence Officer at the FCA, noted the unit's role in supporting growth and UK competitiveness.

This initiative complements existing support for early-stage firms and aligns with broader regulatory changes like Basel 3.1 and Solvency UK.