The Bank of England Atom has granted banking licence to Atom Bank, ahead of its planned launch later this year.
The Durham-headquartered bank won’t have its own branches or even a website, but will run entirely from an app. Customers will be able to download an app onto their desktop for banking from a computer.
The venture, which was set up by Anthony Thomson, co-founder of Metro Bank, said it wants to "set new standards for the banking sector" when it comes to technology.
The one-year-old startup intends to use 3D visualisations and gaming technology for its app, and plans to integrate advanced biometric security.
The bank’s chief executive Mark Mullen said: "This is a wonderful vote of confidence in Atom. We will offer a quality of digital experience without parallel in this sector or in many others.
"It represents the first real alternative to traditional high-street banks and is free of the branch and legacy costs of the existing banks."