Two former Barclays executives have revealed plans to launch a digital bank called Pennyworth, which will partner with a major online mortgage broker.

Pennyworth’s leadership team began preparing their bid for FCA banking authorisation in March.

Mortgage Strategy asked whether the company was looking to partner with either Habito or Trussle, as they are two of the best-known online brokers in the market, but Pennyworth refused to reveal further details at this stage.

Former Barclays’ US digital consumer bank managing director Jeremy Takle and head of product Ben Harvey are leading the launch with plans to target “aspiring affluent young professionals and middle managers”.

Last week Mortgage Strategy reported that another digital bank, Monument had received authorisation with plans to offer buy-to-let mortgages to “mass affluent” professionals, entrepreneurs and investors.

Pennyworth’s bosses say that instead of competing for current account switchers, like traditional high street banks, it will use open banking and artificial intelligence to offer customers oversight of their existing accounts and a personalised banking service.

They say: “Financial planning insight will be a core part of Pennyworth’s service with tailored support to help customers define and track progress towards their life goals”.

The bank’s leadership promises it will offer competitive savings rates alongside low-cost loans and overdrafts.

It says that customers will be able to contact a Pennyworth bank manager through a single click in its app.

Pennyworth chief product officer Ben Harvey says: “We do plan to offer mortgages and will be looking to do this through a partnership with one of the best online mortgage brokers in the market. 

“We want to offer our customers valuable products and we believe currently the best way to do that with mortgages is through a broker that can offer access to the breadth of the market and does so with an excellent digital experience and customer service consistent with Pennyworth.

“Jeremy and I have built banks and digital banking services together across Europe and North America.

“We are building a digital bank for busy people climbing the corporate ladder with complex financial needs, who would benefit hugely from personalised service and financial planning insights, but who struggle to access them in their traditional form.”

Pennyworth chief executive Jeremy Takle adds: “Banking is broken and our mission is to fix it. 

“Traditional banks continue to exploit busy people by providing poor value, impersonal service, and the first wave of neo-banks have failed to break that inertia because they are too busy battling to win current accounts that most people don’t want to switch.”

They are now looking to recruit 1,000 volunteers who will be given early access to its banking app during the beta testing phase in early 2021.