FinTech: UK Online Bank Starling Ends European Ambitions, Pulls Banking Application

July 18, 2022 | FinTech, News

Starling withdrew four years after initiating the application for a European banking license.

British digital challenger bank Starling told staff Monday that it had withdrawn its application for a European banking license from Ireland’s central bank after it spent four years on the process. The bank said in its memo to employees that it will focus instead on new opportunities in lending as well as selling its software-as-a-service product. (CNBC)

However, Starling has not given up its European ambitions entirely; it said it will expand in Europe through deals with other lenders rather than its own retail brand.

“Ultimately, we felt that an Irish subsidiary would not deliver the added value we are seeking,” CEO Anne Boden said in the memo. “We’ll now be focusing on taking our software to banks around the globe through our Software as a Service subsidiary, Engine, and by expanding our lending across a range of asset classes, including through targeted M&A activity,” she added.

Starling is backed by Goldman Sachs (NYSE: GS) as an investor. Goldman is also active in the UK, offering savings accounts under its Marcus brand name.

Starling was last valued at £2.5 billion ($3 billion) in April – 2X what it was worth in a 2021 financing round.

Nevertheless, the decision to pull its banking license application is a setback to Starling’s international expansion plans. It comes at a time when fintechs’ public valuations have plunged; meanwhile Swedish buy now, pay later firm Klarna recently saw its valuation drop 85% to $6.7 billion from $45.6 billion last year.

Related Story: Klarna Raises $800M At Slashed Valuation To Pursue US Expansion

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: CICERO, An AI That Plays The Diplomacy Game “At A Human Level”
November 23, 2022     Artificial Intelligence, News

Meta (formerly Facebook) (NASDAQ: META) announced on Wednesday the launch of CICERO, the first artificial intelligence (AI) agent to achieve human-level performance in the popular strategy game Diplomacy. So far,…
Venture Capital: Astera Labs Lands $150M At $3.15B Valuation
November 22, 2022     News, Venture Capital

Astera Labs announced a $150 million Series D funding round led by Fidelity Management and Research that valued the company at $3.15 billion. Other existing investors, including Atreides Management, Intel…
FinTech: Expedia And Afterpay Tie Up To Offer BNPL For Travel
November 22, 2022     FinTech, News

Indeed, according to a CNN article, travellers should get prepared for the most expensive holiday travel season ever. Average air fare is up about 40% from 2021, and rates for…
Digital Assets: Crypto Contagion Spreads To Miners – Iris Energy Unplugs Mining Hardware Amidst Default
November 22, 2022     Digital Assets, News

Iris Energy (NASDAQ: IREN), the Australia-based bitcoin mining firm, said in a filing that it had taken down a large chunk of its mining capacity that had been used as…