Anne Boden stepped down as CEO of Starling last month after clashing with investors over a sharp drop in the challenger's valuation, according to the Financial Times.
Explaining her decision at the time, Boden cited a potential conflict of interest connected to her 4.9% take in the bank that she founded in 2014.
However, behind the scenes, Boden had clashed with investors over the sale in February of Jupiter Asset Management six per cent stake in Starling, says the FT, citing sources.
The stake was acquired by a group of existing investors in a deal that cut Starling's valuation from £2.5 billion, to between £1 billion and £1.5 billion.
Boden was concerned about the knock on effect on the value of her stake and the 15% of the bank owned by employees, says the FT.
She decided to quit after accepting that her concerns as a shareholder were affecting her role as chief executive.
Starling chair David Spoul tells the FT: "It was Anne’s decision to step aside as CEO. Anne made the decision, with the support of the board, that her two roles as CEO and major shareholder were not compatible given the size of Starling today and its ambitions."