Goldman-backed Starling says no plans to pursue EU bank license, expansion to come from software

AMSTERDAM — Digital bank Starling will not re-apply for a European Union banking license and instead pursue international expansion through its software business, the incoming CEO said, in a diverging approach to overseas growth from some of its rivals.

Starling is among the U.K.’s breed of so-called “neobanks” — digital-only banks that usually have no branches. It started life in 2014, has racked up 4 million customers and was last officially valued at £2.5 billion ($3.2 billion).

The digital bank, which is backed by Goldman Sachs, has traditional offered banking services, like current accounts and more recently lending. Starling’s customers are mainly in the U.K. The company sought to expand abroad by applying for an Irish banking license, which would have given the bank access to the European Union market. Starling withdrew that application in 2022.

Source: CNBC