British challenger bank Mondo has secured a restricted banking licence from the Financial Conduct Authority (FCA) and Prudential Regulatory Authority (PRA).
The digital lender will focus on current accounts and digital services, and will offer features such as instant balance updates.
Mondo crowdfunded £1m in just over 90 seconds earlier this year. Overall, the bank has raised £9m till date and plans a full banking launch early next year.
The 45-person bank previously announced that 30,000 users have signed up to its beta iPhone app and prepaid card, and also claims to have a waiting list of another 200,000 users.
Mondo co-CEO and founder Tom Blomfield “This is how the banking market changes, not with 800 page reviews from public bodies like the CMA, but with technology bringing new ideas to the table. We’re creating something that will completely revolutionise the way people think about their money."
Mondo is the latest digital lender to receive the banking license, the others being Atom Bank, Tandem and Starling.