Introduction to Starling Bank
Starling Bank is a pioneering UK-based digital bank founded in 2014 by Anne Boden, the former COO of Allied Irish Banks. It is designed to provide a fairer, smarter, and more human alternative to traditional banking, focusing on a customer-centric approach and leveraging advanced technology.
Key Services and Products
Starling Bank offers a range of financial products and services, including:
Personal Current Accounts
- Personal current accounts provide users with real-time notifications, spending insights, and the ability to set savings goals. Customers can manage their money on the go using the user-friendly mobile app, which enables quick and secure transactions.
Joint Accounts
- Joint accounts are available for couples or housemates, offering shared spending insights and the ability to set up regular payments. This feature helps partners track their expenses and save towards common goals.
Business Accounts
- Business accounts are tailored for small businesses and freelancers, featuring invoicing, expense categorization, and tax calculations. These accounts also offer integrations with accounting software and access to business loans and overdrafts to support business growth.
Euro Accounts
- Starling Bank also offers personal Euro accounts, allowing customers to hold and manage euros alongside their GBP accounts. Initially, conversions between GBP and Euro accounts were fee-free, but a 0.4% conversion fee was introduced in September 2019.
Key Features and Functionality
Mobile App
- The Starling Bank app is award-winning and provides a seamless banking experience. It includes features such as real-time notifications for every transaction, spending insights to help users understand their financial habits, and the ability to set savings goals.
Contactless Payments
- Customers can use a contactless Mastercard for convenient payments and withdrawals.
Security
- The app allows users to freeze and unfreeze their card directly, providing an added layer of security in case the card is misplaced or if there is suspicion of unauthorized use.
Integration with Financial Apps
- Starling Bank supports integration with third-party financial apps through its Open Banking API, enabling customers to connect their Starling account to other financial management tools for a comprehensive view of their finances.
B2B Services
- The bank provides banking infrastructure to other businesses, including cloud-native payments, real-time transactions, and API-based solutions. This includes indirect access to Faster Payment Service (FPS) and treasury and payout services, all built on RESTful APIs to ensure compliance and agility.
Customer Support
- Starling Bank offers 24/7 customer support, ensuring that users have assistance whenever they need it. This commitment to customer service has earned Starling Bank the highest customer satisfaction rating among UK banks in 2023.
Operational and Revenue Model
Starling Bank operates with a lean structure, having no physical branches, which reduces overhead costs and allows the bank to pass the savings on to customers through competitive rates and minimal fees. The bank’s revenue streams are diverse, including interest income from loans, service fees for overseas card usage and business banking services, interchange fees from card-based transactions, revenue from B2B services, and commissions from marketplace partners.