Waracle has built a reputation for its design and development of digital products and solutions. In this partnership, it will develop customer apps with a particular focus on products for financial wellbeing.

Waracle’s experience will be vital as the bank develops its Working Capital Health proposition, aiming to transform the bank’s existing business current account offering into a financial wellness tracker for SMEs. This announcement is part of Virgin Money’s commitment to the recent £35m award from the Banking Competition Remedies (BCR) Capability and Innovation Fund.

Gavin Opperman, group business director at Virgin Money, said: “The skills and capabilities which Waracle provide are very much in demand and are vital in helping us develop our innovative business banking proposition, both in terms of what we deliver and how we deliver it. We’re confident the cutting edge approach to technology the team will deploy will deliver great experiences for our customers.

“Waracle is a strong Scottish-based company and we’ve partnered with them previously on the creation of our augmented reality Currency Converter, which was a great success. The team’s collaborative approach and work ethic fits perfectly with our combined team, including an ecosystem of capability partners. I look forward to seeing the results of our latest collaboration.”

The launch of Virgin Money Business will mark the arrival of the Virgin brand into the business banking market for the first time.

Mike Wharton, co-founder and chief technology officer at Waracle, added: “We’re delighted to be selected as a technology partner with Virgin Money Business. It’s tough times for businesses and the innovative banking proposition Virgin Money is bringing onto the market to help the business community thrive couldn’t come at a better time. We’re excited to bring our expertise to the table to work alongside the Virgin Money team.”

Virgin Money has recently signed up to The Fintech Pledge, setting a global standard for partnerships between the UK’s largest banks and FinTech firms.

Derek Smith, head of digital solutions at Virgin Money, said: “Collaborating with FinTechs is a huge part of our overall strategy and we value the input our partners bring to the table. In Scotland, FinTech’s are really driving innovation and are transforming the customer experience. We are delighted to have Waracle on our team as we prepare to deliver our Working Capital Health proposition to the market.”