In a recent press release, UK digital lender Sterling Bank announced that they have withdrawn their banking license application with the Central Bank of Ireland and will be shifting focus to a different expansion plan.
The decision to shift focus was a tough one, considering the UK challenger bank long standing plans for a European Union expansion. The expansion project had been in the works for a long time, it was temporarily put on hold in 2020 during the pandemic. The Ireland Licensing for a retail bank was the first step to the banks; goal of passporting into other European countries.
Starling founder and CEO Anne Boden said:
“This was a really tough call to make, particularly as we have had Ireland in our sights for so long. Sometimes changing course is the right option. My job as CEO is to constantly test our thinking against evolving circumstances and to make sure that we are delivering value and maximizing potential for growth. Ultimately, we felt that an Irish subsidiary would not deliver the added value we are seeking.”
Starling had successfully completed the initial application phrase and had been invited to submit a full application. However, after careful consideration, they concluded that an Irish Banking License was no longer top on their priority list due to market conditions and the bank’s new expansion plans, Software as a Service (SaaS).
Starling new focus is on implementing it’s Software as a Service (Saas), Engine, expansion to banks globally. There are also plans to expand lending to various asset class.
