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
N26 officially launches in the US
N26 has officially launched in the USA after completing its two-month beta program...
An interview with Ed Siegel: Savers want ‘reassurance’ that their money is used to support positive social change
In an interview with Specialist Banking, Ed Siegel, chief executive at Charity Bank (pictured above), talks about the rising demand for ethical finance, and improving awareness of this particular sector...
Landlord confidence reaches seven-year low
Only 29% of landlords have positive expectations for their letting business over the next three months, according to recent research...
Shawbrook grows structured finance team
Shawbrook Bank has appointed Brook Kalkhoven (pictured above) as an associate director to its structured finance team...
OakNorth expands with new Manchester office
OakNorth has moved into a new office in Manchester at Ship Canal House...
What is a link mortgage?
Assume you have a high-net-worth (HNW) client who finds a new property they want to purchase before they have sold their main residence — what solution would you choose...
Shawbrook names new relationship director for London
Shawbrook Bank has appointed Adam Agius (pictured above) as its new relationship director for the London, Thames Valley and South region...
Wyelands Bank launches asset finance offering for renewables sector
Wyelands Bank has appointed Mark Turrell (pictured above) to its asset finance team as it launches its newly created offering for the renewables sector...
Leek United reveals mortgage rate reductions
Leek United has revealed rate reductions for two of its most popular mortgages...
Gravity selects Finastra to power banking and lending services
Gravity has selected Finastra’s Fusion Essence in the cloud solution for its end-to-end core banking capabilities...
An interview with Paul Stockwell: Islamic finance has ‘enormous opportunity’ for growth over coming years
In an interview with Specialist Banking, Paul Stockwell, chief commercial officer at Gatehouse Bank (pictured above), discusses increasing awareness of Islamic finance and opportunities in the banking world...