Starling Bank Explores ‘Range of Expansion Options’ in US

Neobank Starling Bank, based in the United Kingdom, is exploring a “range of expansion options” in the United States, a Starling spokesperson told PYMNTS in a Thursday (June 26) email.

The comments followed PYMNTS’ inquiry about a report that Starling aims to support its expansion in the U.S. by buying a nationally chartered bank in the country.

Bloomberg reported Thursday, citing an unnamed source, that Starling is looking for a bank that is on the East Coast, that has assets of around $2 billion and that is using outdated digital offerings that could be improved with Starling’s technology.

When reached by PYMNTS, the Starling spokesperson declined to comment on the report but said in an emailed statement: “Having recently established a U.S. presence for Engine by Starling, our software-as-a-service business, we’re exploring a range of expansion options that would enable us to showcase Engine’s capabilities in this major market.”

Starling began its expansion into the U.S. earlier this year with an announcement that it would make its technology available in the country and registered a subsidiary in Delaware, according to the Bloomberg report.

When announcing that move in April, Engine by Starling said in a press release that it was building a team and seeking a regional headquarters on the East Coast. It added that it saw an opportunity to provide its cloud-native technology to the 4,000 mid-tier banks, community banks and credit unions in the U.S.

“We’ve been successful in Europe and in Australia, so now is the right time for us to start competing in the exciting North American market,” Starling Bank Group CEO Raman Bhatia said in the April press release.

According to the Thursday Bloomberg report, one of Starling’s competitors, OakNorth, said earlier this year that it agreed to buy Birmingham, Michigan-based Community Unity Bank.

When OakNorth announced its plans to acquire the bank in March, it said in a press release that the bank’s team would support OakNorth’s continued expansion across the U.S.

“Over the last 18 months, we’ve supported businesses with their growth ambitions, providing several hundred million dollars of capital,” OakNorth CEO and co-founder Rishi Khosla said in the release. “Demand from U.S. borrowers continues to be exceptionally strong, and our differentiated offering and unique approach to lending has enabled us to rapidly establish a strong presence in the U.S. market…”