Starling Bank

Starling Bank

Type	Private
Industry	Financial Services
Founded	18/6/2014
Founders	Anne Boden
Key people	John Mountain - Interim CEO
Revenue	+£452.8m (2023)
Net income	£194.6m (2023)
Website	https://www.starlingbank.com/

Starling Bank (/ˈstɑːrlɪŋ/) is a British bank operating in the United Kingdom. It offers a range of mobile banking services, including current and business accounts, personal loans, and various other financial products. It has won multiple national rewards including, but not limited to, the “Best Business Banking Award” in 2023 & Which?'s “Banking Brand of the Year” .

The main mission of Starling Bank is to provide a user-friendly, customer-focused, and technologically advanced banking experience. They aim to empower individuals and businesses with innovative financial solutions, giving them more control over their money and helping them achieve their financial goals.

The vision of Starling Bank is to be a leading digital bank that revolutionizes the way people manage their money. They strive to create a seamless and personalized banking experience through cutting-edge technology, responsive customer service, and a commitment to transparency.

Starling Bank's values are centred around putting the customer first and fostering a positive banking experience. Main emphasis on transparency, accessibility, sustainability and gender equality.

History

Starling Bank was founded by Anne Boden, a former executive at Allied Irish Banks with the aim of creating a modern, customer-centric banking experience. The bank received its banking licence from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) in July 2016 . In May 2017, the bank launched its first mobile-only personal account, offering features such as real-time notifications and spending insights.

What are the main offerings of the company?

Starling Bank is best known for its advanced mobile app, which provides customers with easy access to their financial information and allows them to manage their accounts seamlessly. Some key features and services offered by Starling Bank include:

Offering Features	Comment(s)
Current Accounts	Offers personal and business current accounts with no monthly fees. Customers can make payments, set up direct debits, and use their debit card for purchases worldwide.
Overdraft Facility	Eligible customers can apply for an overdraft, with clear and transparent interest rates.
Personal Loans	The bank provides personal loan options to its customers, making it easier for them to access credit.
Savings Accounts	Starling Bank offers savings accounts, helping customers save money and earn interest on their balances.
Spending Insights	The mobile app provides detailed insights into spending habits, categorizing transactions and helping customers understand their financial behavior.
Foreign Currency Accounts	Customers can hold and spend money in various foreign currencies using Starling Bank's app, making it convenient for travelers.
Business Accounts	In addition to personal accounts, Starling Bank provides tailored business accounts with features such as invoicing and integration with accounting software.
Payments and Transfers	Customers can make domestic and international payments and transfers using the app, including support for Apple Pay, Google Pay, and Samsung Pay.
Partnerships	Starling Bank has collaborated with various fintech partners to enhance its offerings, including providing access to investment products and mortgage solutions. Partmers include Weathlify[link?], CreditLadder[ref?] and Anorak[ref?]

Technology and Security

Starling Bank relies heavily on cutting-edge technology to provide its digital banking services. The bank employs industry-standard security measures, such as data encryption and biometric authentication, to protect customer information and ensure secure transactions.

Recognition and Awards

Starling Bank's commitment to innovation and customer service has earned it several accolades and awards within the fintech industry. Notable awards include being named 'Best British Bank' at the British Bank Awards multiple times and 'Best Current Account Provider' by the British Banking Awards.

Marketing and Partnerships

As an online bank, Starling engages the audience through social media platforms such as Twitter and tiktok. Advertisements are posted on TV, radio, podcasts and public transports. Partnerships and Sponsorship such as Archery GB national finals, UEFA Women's EURO 2022, and Trillion Trees also further increase the company's brand awareness.

Innovations

As it is the first digital-only bank in the UK, all infrastructure are virtual and therefore solutions have to be implemented for normal services to function such as:

• First digital bank to join current account switch service.
• First digital-only bank to join Faster Payments
• First to implement in-app provisioning
• Implementation of Spending insights

Main Income

Interest Payments are the main source of income for Starling Bank

Expansion and International Presence

Currently, Starling Bank current holds 9.4% and 2.4% in SME and retail market share respectively. While Starling Bank initially focused on the UK market, it has expressed intentions to expand its services to other countries. In 2020, it launched a beta version of its banking app in Ireland, marking its first step towards international expansion.

Funding rounds

Starling bank has had over 10 funding rounds, having raised an amount of $1.1 billion. The fundings are displayed in the table below, with the most recent one being on April 26th, 2022, raising £130.5 million by lead investor Goldman Sachs.

Date	Transaction	Money Raised (£ millions)	Lead Investor
26/04/2022	Series D	130.5	Goldman Sachs
19/04/2021	Series D	50	Goldman Sachs
8/03/2021	Series D	272	Fidelity Management and Research Company
28/05/2020	Venture Round	44.3	Chrysalis Investments, JTC
10/02/2020	Venture Round	60	-
23/10/2019	Venture Round	30	Chrysalis Investments
27/03/2019	Non Equity Assistance	-	Future Fifty
22/02/2019	Grant	100	Capability and Innovation Fund
13/02/2019	Series C	75	Harald McPike, Merian Global Investors
24/04/2018	Series B	10	-

The latest issuance of shares was towards existing shareholders, increasing the Group's Share Capital by £553, which was further increased during 2022 by additional issuances.

Ownership Structure

Private limited companies include characteristics such as main private individuals involved in the business and financial institutions investing through issuance of private shares. Representative of this type, Starling Bank is partly owned by Anne Boden, the founder, Harry McPike, a global private investor, and then multiple financial institutions such as Goldman Sachs, Jupiter, Fidelity, Railpen, Qatar Investment Authority and Millennium Management.