Starling is the latest challenger bank to raise a large round to support a UK market launch. It remains to be seen whether better technology and customer experience will be enough to convince consumers to switch. This could alternatively push the incumbents to enhance their customer service.
Starling, a new digital bank, has just announced a $70m funding round ahead of a move into the UK banking market. Led by the former chief operating officer of Allied Irish Bank, Anne Boden, Starling wants to tap into the growing trend of mobile-focused customers. Sidestepping the legacy systems weighing down their larger competitors, digital banks like Mondo and Atom Bank (which received its licence in June 2015), hope to provide a superior current account service. Atom’s chairman Anthony Thompson said the bank only needed ‘a tiny proportion’ of the 64m current accounts in the UK to become very successful.