Tandem Bank aims to offer a package of current account, credit card, savings and loans to UK consumers through a mobile-first service before the end of 2016, following its licence award.

It is only the second digital-only bank in the UK to receive a licence from the Bank of England, after Atom Bank which is backed by Spanish giant BBVA.

Both outfits have in common a philosophy that puts mobile at the centre of what they do. Tandem Bank offers a mobile and web experience with a supporting call centre based in its London HQ.

It is being tight lipped about the exact details of its service, although co-founder Ricky Knox (pictured) blogged that “Tandem will include a mobile experience that saves customers substantial money each year”.

Knox also co-founded mobile remittance firm Azimo.

The bank will use technology to become what Knox describes as “a good bank”, at least in terms of its perception among consumers. That means actively helping its users avoid overdrafts and missed payments with “nudges and reminders”, presumably via text or instant messaging.

Its mobile app also promises to help out users by finding them the best rates and services. Obviously, this will include its own offerings but might also involve other banks as well as services from other sectors, for instance utility providers.

However, Tandem Bank will hardly be alone in pitching itself to this particular market. City AM said around 20 banks are currently in pre-application discussion with the Bank of England about receiving licences.

Typically, only one in three of this number will make a formal application but, taken alongside the digital offerings of traditional banks, this makes for a competitive landscape.

The UK government set itself a target of seeing 15 new banks on the high street over the next five years.