Goldman-backed fintech Starling withdraws European bank license application in blow to global ambitions
Summary
Starling will instead focus on selling its software-as-a-service product, aimed at helping banks with their digital transformation strategies, and expanding into new areas of lending, CEO Anne Boden told staff in a memo Monday. Backed by the likes of Goldman Sachs and Qatars sovereign wealth fund, Starling has won investment from such high-profile investors with the promise that it can achieve success in countries outside its home market. It competes with numerous popular fintechs in the country including Revolut and Monzo, as well as its own investor Goldman, which offers savings accounts through a digital banking brand called Marcus. The company was recently the target of criticism from Lord Agnew, a former U.K. minister, who questioned its deployment of government-backed lending schemes aimed at helping businesses through the coronavirus crisis. The Covid loans program provided a big boost to Starlings bottom line, with the upstart bank posting its marquee profit in October 2020 following a significant uplift in lending activity.