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.”