The FCA and Prudential Regulation Authority have announced the first group of banks and building societies to benefit from their joint Scale-up Unit, an initiative aimed at supporting fast-growing, innovative financial firms to grow sustainably at pace.

Among the six firms that have been accepted to the first cohort are the challenger banks Allica Bank, ClearBank, Monument Bank, OakNorth Bank, and Zopa Bank, with Nottingham Building Society rounding out the intake.

Working with the FCA’s Scale-up Unit, they will receive tailored support to help them navigate the regulatory landscape as they develop new products, attract new customers, and move into new markets.

Positioned as a dedicated point of contact to help banks and building societies scale, the Unit will work with growing firms to facilitate out-of-cycle capital reviews and coordinate regulator interactions ahead of, and during, formal submissions.

The Scale-up Unit also promises support for early-stage discussion around new products or services, and will facilitate information-sharing surrounding the PRA and FCA’s policy-making.

PRA and FCA officials will also meet directly with participating firms, both collectively and one‑to‑one, over the coming months, for discussions which will give regulators a clearer view of how scaling businesses experience the UK’s regulatory process. 

The FCA said these insights will help it to streamline the regulatory framework for the wider sector in an effort to help other firms expand and innovate, another example of its mandate to prioritise economic growth, as laid down by the UK Government.

“The Unit should provide banks like Allica with more capital certainty and more regulatory support to boost lending to the established SMEs that power the UK’s real economy,” said Richard Davies, CEO of Allica Bank. “Done well, the Scale-up Unit can support the government’s objective to make the UK the location of choice for financial services firms to invest, innovate and grow.”

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The regulators will be open to expressions of interest from a second cohort of firms later this year, with the Scale-up Unit also open to requests for support from smaller, fast-growing insurers on an ongoing basis, rather than through a cohort.

The FCA also confirmed that it will be opening expressions of interest for a new solo regulated Scale-up cohort in the spring, supporting firms from a wider range of sectors.

“We look forward to working with the first cohort as we deliver on our strategy to support growth and UK competitiveness,” said Jessica Rusu, chief data, information and intelligence officer at the FCA.