Starling targets wholesale banking
(24 November 2017 – Singapore) Digital challenger bank Starling has been accepted into the European Union’s payment system for large euro transactions, allowing it to process faster payments for major companies and big banks.
It is the first UK challenger bank to be accepted into the system, called Target2, helping it speed up its planned expansion into the rest of Europe, starting with Ireland.
Additionally, the digital-only bank has won a large UK Government contract with the Department for Work & Pensions to help verify benefit claimants for universal credit.
Under the contract Starling will oversee a system for making initial small payments as a means of identity verification.
Starling has also been accepted into the EU’s payment system for large euro transactions, allowing it to process faster payments for major companies and big banks.
It is the first UK challenger bank to be accepted into the system, called Target2, helping it speed up its planned expansion into the rest of Europe, starting with Ireland.
Anne Boden, founder and chief executive of Starling and a former AIB and RBS banker said, the bank was “becoming a major player in both retail and wholesale banking”.
Commenting on moving into euro wholesale banking, Boden added, “It’s a step change for us. A lot of the other digital challengers are small and peripheral. What we’re doing is becoming a member of the big schemes using our expertise.”
Starling plans to launch a business current account service early 2018 and will bid for a share of the £833 million fund RBS is providing to boost competition in lieu of selling off business lending subsidiary Williams & Glyn.
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