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Starling to launch banking-as-a-service package in Europe

Starling Bank's much-trailed expansion into European markets will come in the form of a banking-as-a-service technology package, rather than a customer-facing proposition.

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Starling to launch banking-as-a-service package in Europe

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Arriving in H1 2022, Starling will launch its services in France, Germany, the Netherlands and Spain.

Dubbed 'Starling-as-a-Service', the offering will enable businesses to build their own financial products on its banking platform, such as savings or current accounts, integrated digital wallets, kids’ cards and debit cards. Starling handles the technical and regulatory demands behind the scenes, leaving businesses to take care of their customers with embedded banking baked in.

CEO Anne Boden, “The thriving technology and fintech scene in European markets makes them a great fit for the culture of innovation at Starling, and therefore a natural space for us to offer and develop our solutions in Europe.

“We have seen a consistent and growing demand for digital financial services, further accelerated by extended lockdowns and a shift in consumer behaviours in key European markets, and it is clear that Starling can power new and exciting opportunities for businesses across Europe”

Starling launched BaaS in the UK in 2018 and already has 25 payment and banking services customers, including Raisin, CurrencyCloud, Moneybox and Vitesse.

In a letter to her future self on LinkedIn, Boden writes: "This new service offers our partners the benefit of Starling’s advanced technology, to use as their own. Thanks to embedded finance, businesses as diverse as retailers to utilities, from healthcare to manufacturing, now have the opportunity to derive a significant proportion of their revenues from financial services."

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Comments: (2)

A Finextra member 

What does the EBA say of a Banking as a service concept?This looks like an advanced outsourcing of central parts of the financial business to unregulated companies like retailers. Who will be in charge of the KYC, beneficial owner checks, aml controls if the customer facing part is with unregulated entities? Who is liable for wrongdoing in for instance the AML/ATF controls -likely not a  supermarket company? Does Starling have an EU banking license since the UK unfortunately left the union?

Andrew Smith

Andrew Smith Founding CTO at RTGS & ClearBank

This makes a lot of sense - BaaS enables them to get a foothold in europe, improve their tech in this region and support the growing fintech scene which is better served in the UK

Valuation up again then for Starling...

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