Starling Bank has hailed Manchester's "deep pool of tech talent and rich cultural and creative heritage" as key to its decision to open an office in the city.
The bank has chosen the city for its fourth UK office, and is set to create up to 1,000 jobs.
It follows a year of growth for the digital bank, which announced its first full year of profitability, reached the three million account milestone and launched Engine by Starling, its software-as-a-service offering.
Anne Boden, founder and chief executive of Starling Bank said:
"What better place to set-up shop than in Manchester? As the world's first industrial city, with three brilliant universities on its doorstep and a thriving technology scene, there was never any doubt that Manchester would house our first step into the North."
Starling said it had selected Manchester for its next base for its "deep pool of tech talent and rich cultural and creative heritage". It highlighted the city's £5bn digital ecosystem and access to graduates from three universities.
The region is home to some of the UK's fastest growing start-ups and tech giants, with five tech unicorns based in the North West and six more pending.
Starling's central Manchester base will open in the first half of 2023 to support the next phase of the bank's growth as it continues to build banking technology for its personal and business account customers.
The bank is already hiring for its Manchester roles. Its base in city will join its four existing offices in London, Cardiff, Southampton and Dublin, which currently house more than 2,000 employees.
Susanna Yallop, chief people officer at Starling Bank, added:
"We've expanded our headcount by 20% this year and only continue to grow. Our sights are now firmly set on Manchester, where we can draw from its potential workforce of more than seven million, allowing us to grow our headcount even further with some of the North's finest talent."