U Account has revealed that it is acquiring an average of 200 new accounts holders every day and is due to have 50,000 customers by the end of 2017.
Launched in November 2016, smartphone-based U Account offers all the usual functions of a traditional current account, including a contactless MasterCard debit card, plus a suite of other options designed to help customers manage their money and set cash aside.
Sheffield-based U Account currently employs over 50 staff and has raised £12m of funding from City and UK-wide investors.
It is aimed at people in the UK living on extremely tight budgets and looking to manage their money.
The account contains budgeting tools and extra accounts to help set money aside for emergencies or planned purchases and operates on a transparent ‘pay-for-what-you-use’ subscription – like a mobile phone tariff – meaning there are no hidden costs or charges.
U Account is not a lending bank and offers customers the strongest elements of a full current account without depending on lending money, which means users are not moved towards unnecessary debt and the associated costs and charges.
“People who choose the U Account have faced up to the fact that a future of spiralling credit and bank charges is unsustainable,” said Alex Letts, chief unbanking officer and founder of U Account (pictured above).
“They have taken affirmative action by opening their U Account, deciding for themselves that they need a fresh start with a credible, ethical, transparent and fair alternative to lending banks.”
Alex added that what U Account did was simple common sense and that there were so many people who were unsuited to the bank model and who the banks didn’t particularly want to serve.
“They still need a top-class current account, but one which works to a different agenda.
“Application for a U Account is open to all and our model is funded by transparent charges, not by the proceeds of unsecured credit.
“In this way, our interests and our customers’ financial wellbeing are 100% aligned.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Paragon reports 54% asset finance lending increase
Paragon Banking Group has seen its asset finance lending increase to £164m in the six months to 31st March 2018, up 54% on the same period last year.
Sainsbury’s Bank launches BTL products
Sainsbury’s Bank has expanded its mortgage range with the launch of new buy-to-let (BTL) products.
Charter Savings Bank launches five new accounts
Charter Savings Bank has announced the launch of five new accounts as well as rate rises of up to 0.16%.
Mobile banking log-ins increase 13% in 2017
Customers logged into mobile banking apps 5.5 billion times during 2017, up 13% on the figure for 2016, according to the latest research.
PCF reports £2.1m profit before tax
PCF Group PLC has announced that profit before tax was up 20% to £2.1m – notwithstanding the cost of new banking infrastructure and resource – for the six months to 31st March 2018.
Tandem plans to originate £1m-plus mortgages
In an exclusive interview with Specialist Banking, Ricky Knox, CEO at Tandem (pictured above), revealed that the digital challenger bank was planning to soon go live with new originations for mortgages.
Tipton & Coseley Building Society names new director
Tipton & Coseley Building Society has hired Cammy Amaira (pictured above) as its new director of sales and marketing.
EIB advances €100m to VIVAWEST
The European Investment Bank (EIB) has provided a €100m loan to VIVAWEST.
Retail savings: an attractive source of funding
While issues such as the impact of Brexit, regulation, competition and transforming business models through digitalisation are an immediate priority for many lenders not currently in the savings market, savings should be a strong future strategic consideration.
Arbuthnot Commercial lends £3.25m against completed development
Mantra Capital has arranged a £3.25m loan facility against a multi-residential unit in Peterborough through Arbuthnot Commercial, the commercial arm of Arbuthnot Latham & Co.