The UK’s banking regulators have announced the first firms to join a new supervisory initiative designed to support fast-growing financial institutions as they scale.
The Prudential Regulation Authority and the Financial Conduct Authority confirmed the initial cohort for their joint Scale-up Unit, a programme first revealed last year to strengthen engagement with innovative and rapidly expanding firms. The initiative is intended to provide more tailored regulatory support, helping firms grow at pace while maintaining resilience and sound risk management.
Six banks and building societies have been accepted into the first cohort: Allica Bank, ClearBank, Monument Bank, Nottingham Building Society, OakNorth Bank, and Zopa Bank. All six have expressed interest in working more closely with regulators as they develop new products, expand customer bases, and explore new markets.
Under the programme, senior officials from both regulators will engage directly with participating firms over the coming months, holding both group sessions and one-to-one meetings. As well as supporting the firms themselves, the regulators say the initiative will give them deeper insight into how scaling institutions experience the regulatory framework, informing potential improvements to supervisory processes across the wider sector.
Charlotte Gerken, executive director for UK deposit takers at the PRA, said: “Welcoming the first cohort to our Scale-up Unit is an important milestone. It shows our commitment to helping firms grow in a sustainable way that benefits the financial services sector and wider economic growth.”
Jessica Rusu, chief data, information and intelligence officer at the FCA, said: “We look forward to working with the first cohort as we deliver on our strategy to support growth and UK competitiveness. Our joint Scale-Up Unit enhances the support available to firms as they move from start-up to scale up, helping them to grow successfully and sustainably.”
The regulators confirmed that expressions of interest for a second cohort will open later this year, with further details to follow. Outside the cohort model, the Scale-up Unit will also remain open to ongoing requests for support from smaller, fast-growing insurers that meet the criteria set out on the PRA’s website. In parallel, the FCA said it will expand its existing support for high-growth firms by opening expressions of interest for a new solo-regulated Scale-up cohort in the spring, covering a broader range of sectors.
Industry participants welcomed the announcement. Richard Davies, CEO of Allica Bank, said: “Allica are delighted to be included in the initial Scale-up Unit cohort, having led the call for a dedicated regulatory unit to support firms as they scale. 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.
“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.”
Rishi Khosla, CEO and co-founder of OakNorth, added: “We’re honoured to be part of the first cohort of the Scale-up Unit. OakNorth was founded to empower breakthrough businesses – profitable and scaling lower-mid-market companies – who are too often overlooked by traditional banks, and this tailored regulatory support will help us better deliver on that mission as we continue to scale.
“Having already lent over $21bn to these businesses, supporting the creation of tens of thousands of jobs and homes, we’re delighted to work closely with regulators to build an even stronger platform for sustainable growth.”
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