Kroo Bank has announced that customer current account deposits have surpassed £1 billion.

The digital bank says it has paid over £51 million in interest to around 190,00 customers since it launched its first current account less than two years ago.

Kroo quoted figures from the Financial Conduct Authority (FCA) which show that around £253 billion sits in accounts which don’t gain interest.

It added that it aims to challenge the banking industry’s “interest rate inertia” which prevents customers receiving more interest on their money.

“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,” said Nazim Valimahomed, co-Founder of Kroo. “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.”

The bank was granted a full banking licence by the Bank of England in June this year. The bank can now offer overdrafts, loans, savings products, and deposit protection via the Financial Services Compensation Scheme up to £85,000.

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