Wednesday 16 August 2017

UK start-up bank to commence European push starting in Ireland

The UK-based company is run by a former executive of AIB, Anne Boden
The UK-based company is run by a former executive of AIB, Anne Boden

Michael J. Moore

Starling Bank, a financial startup, which lends money to consumers via smartphones, has said that it is to target expansion in the EU, despite concerns regarding the future of cross-border banking following Brexit.

The UK-based company, which is run by a former executive of AIB, Anne Boden, has won approval from the Bank of England to operate in Ireland through the EU passporting facility, according to a statement from the company on Monday.

The expansion of its operations to Ireland is subject to approval from the Irish regulator, and comes less than twelve months after the company was granted its UK banking license.

The company offers consumers checking accounts via smartphones and allows rival firms and financial technology companies to market their services to its clients.

Currently only four lenders control as much as 80pc of the consumer-banking industry in the UK, however Starling Bank is part of an increasing number of new UK-based lenders to win licenses from the Central Bank of England to compete in the UK market.

Others, including Monzo Bank, are planning to open in Europe shortly.

Bloomberg

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