The UK’s financial regulators have named the first firms set to benefit from a new initiative designed to support fast-growing financial institutions as they move from start-up to scale-up.
The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have confirmed that six banks and building societies will form the inaugural cohort of their joint Scale-up Unit.
Announced last year, the Scale-up Unit has been created to strengthen engagement between regulators and innovative firms that are expanding rapidly. The aim is to provide more tailored regulatory support, helping firms grow at pace while remaining resilient, well-governed, and aligned with regulatory expectations. By working more closely with these organisations, the regulators also hope to improve how the regulatory framework supports growth across the wider financial services sector.
The first cohort includes Allica Bank, ClearBank, Monument Bank, Nottingham Building Society, OakNorth Bank, and Zopa Bank. Each of these firms has expressed interest in receiving support to help them navigate regulatory requirements as they launch new products, attract customers, and explore new markets.
Under the programme, PRA and FCA officials will meet participating firms both collectively and on a one-to-one basis over the coming months. This ongoing engagement is intended not only to assist the firms directly, but also to give regulators deeper insight into the challenges scaling institutions face when interacting with the regulatory system.
Charlotte Gerken, PRA executive director for UK Deposit Takers, 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.”
From the FCA, Jessica Rusu, chief data, information and intelligence officer, 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 have confirmed that expressions of interest for a second cohort will open later this year, with further details to follow. In parallel, the Scale-up Unit will also remain open to ongoing requests for support from smaller, fast-growing insurers that meet the PRA’s published criteria. The FCA added that 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, aimed at firms across a broader range of sectors.
Industry leaders within the first cohort have welcomed the announcement. Allica Bank CEO Richard Davies 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.”
OakNorth CEO and co-founder Rishi Khosla also welcomed the move, saying, “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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