The Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA) have announced the first group of banks and building societies to join their joint Scale-up Unit.

The Unit, first announced last year, aims to provide tailored support for fast-growing and innovative financial firms, helping them to grow sustainably at pace, with Allica Bank, ClearBank, Monument Bank, Nottingham Building Society, OakNorth Bank, and Zopa Bank the six organisations in the initial cohort.

The regulators said that these firms will receive support designed to help them navigate the regulatory landscape as they develop new products, attract new customers, and move into new markets.

Officials from both financial watchdogs will meet with the banks over the coming months.

The PRA and FCA said that the move will also help them better understand scaling firms’ experience of the regulatory process, with the aim of improving regulatory processes for the wider financial services sector to help firms "expand and innovate."

“Welcoming the first cohort to our Scale-up Unit is an important milestone," said Charlotte Gerken, executive director for UK deposit takers at the PRA. "It shows our commitment to helping firms grow in a sustainable way that benefits the financial services sector and wider economic growth.”

The new unit builds on existing initiatives for early-stage firms by the regulators, including the Regulatory Sandbox, Early and High Growth Oversight, AI Lab, and Pre Application Support Service (PASS).

Jessica Rusu, chief data, information and intelligence officer, 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 said that they are open to expressions of interest from a second cohort of firms later this year.

“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," said Richard Davies, chief executive, Allica Bank. "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, chief executive and co-founder of OakNorth, said that having already lent over $21 billion to businesses, it is is "delighted" to work closely with regulators to build an even stronger platform for sustainable growth.

"We’re honoured to be part of the first cohort of the Scale-up Unit," he continued. "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."

ClearBank's chief executive Mark Fairless said that scale ups are an important engine room of the UK economy, driving innovation and attracting inward investment.

"ClearBank is delighted to be supporting this agenda, and to contribute to a programme that recognises the vital role these firms play in strengthening UK plc," added the chief executive. "This new Unit will help ClearBank to accelerate progress on critical initiatives that support our clients and the wider financial services sector in the UK."

The Unit is also open to requests for support from smaller, fast-growing insurers on an ongoing basis, rather than through a cohort.

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