The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have announced the first cohort of banks and building societies to join their “Scale-up Unit”.

Six firms expressed interest in the initiative, with Allica Bank, ClearBank, Monument Bank, Nottingham Building Society, OakNorth Bank and Zopa Bank all being accepted to the first cohort.

The Scale-up Unit, announced last year by the regulators, has been designed to build stronger ties and provide tailored support for fast-growing and innovative financial firms. The first six firms to sign up will now receive support to help them navigate the regulatory landscape as they develop new products, attract new customers, and move into new markets.

PRA and FCA officials will meet directly with the firms, both as a group and individually, throughout the coming months, which in turn the regulators said would help them improve their processes for the entire sector.

Executive director for UK deposit takers at the PRA, Charlotte Gerken, said that welcoming the first cohort to the 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,” Gerken commented.

Chief data, information and intelligence officer at the FCA, Jessica Rusu, 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 two regulators indicated they will be open to expressions of interest from a second cohort of firms “later this year”.

They added that the unit is also open to requests for support from smaller, fast-growing insurers on an “ongoing basis”, rather than through a cohort, in line with PRA criteria.

CEO and co-founder of OakNorth, Rishi Khosla, said his company would be delighted to work closely with regulators and “build an even stronger platform for sustainable growth”, while Allica Bank CEO, Richard Davies, added that the unit should provide banks with “more capital certainty and more regulatory support”.

“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,” Davies said.

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