UK-based financial technology company Cashplus has finally received a full banking license from the Prudential Regulation Authority (PRU). The fintech has been serving as an e-money institution for several years, Cashplus will now provide its customers as a regulated bank. The credit card lender for SMEs was granted an unrestricted banking license by the PRA on February 3rd 2021 and now has the approval for using its over £500 million in customer deposits for money lending.
A noteworthy update is that the customer deposits will now come under the Financial Services Compensation Scheme (FSCS). The scheme protects customer accounts, in case financial firms fail, by compensating customers up to £85,000. The existing customers of Cashplus will not see any change to their bank accounts. They will be able to use their account and existing cards as usual. However, the company has made some changes to its terms and conditions, which the bank says it has notified its customers about.
Cashplus on being granted full banking license
Cashplus Founder and CEO, Rich Wagner said now that Cashplus is a bank, there’s tremendous potential waiting to be unlocked. While some firms burned through cash in the pursuit of growth at any cost, the positive product economics and disciplined approach of Cashplus allowed the fintech to grow with confidence, he said.
When the UK-based fintech first started out, it had first-hand expertise and experience with the tribulations that Small and Medium Enterprises go through when they’re dealing with the big banks, Wagner added. The same small enterprises would now be crucial to the economic recovery of the United Kingdom and they’ll need a banking institution that takes them seriously and provides them with what they need to be successful.
Wagner says that while big banks slam the door shut at this time, Cashplus will be welcoming such customers, providing them with the capital they need along with delivering enhanced products that will support SMEs through the challenging months ahead, he said.
About UK-based fintech Cashplus
Founded in the year 2005, Cashplus today has more than 1.6 million customers and has processed over £20,000,000,000 in payments. As a fintech and now a bank, Cashplus offers Saving and Current accounts and Business Credit Cards Personal Credit Cards. Its range of corporate solutions includes Business Expense Card, APIs and Open Banking, Bulk Payments and Payroll.
It is the one of the latest fintechs that have emerged as a digital bank. As a bank, Cashplus intends to enhance its services while offering new features for its customers. Standing tall in the business for the past 15 years, Cashplus has differentiated itself by continuously growing as well as delivering profitability.
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