Raman Bhatia, Starling’s incoming CEO. Bhatia resigned from OVO Energy Ltd. as CEO.
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AMSTERDAM — Digital bank Starling will not reapply for an EU banking license and will instead pursue international expansion through its software business, its incoming chief executive said, in a departure from how some rivals have grown overseas.
Starling is one of the UK’s so-called “neobanks,” digital-only banks that typically don’t have branches. It opened in 2014, has 4 million customers, and was last officially valued at £2.5 billion ($3.2 billion).
Digital Bank, powered by Goldman Sachs, offering traditional banking services such as current accounts and more recently loans. Starling’s customers are mainly in the UK. Starling withdrew the application in 2022.
On Wednesday, Raman Bhatia outlined the company’s international expansion plans, his first public remarks since being named chief executive in March, succeeding founder Anne Boden.
Bhatia said the company had no plans to reapply for an EU banking license to enter new countries. Instead, international expansion will be driven by Engine, the software platform Starling sells to other companies so they can build their own digital banks.
Bhatia said: “I am very bullish on Starling’s best-of-breed product internationalization, proprietary technology versus market, unique regulatory regime, capital requirements and approach to building trust and brand extension that have not been available to any plan yet. Be confirmed.
He described the opportunities in places such as Thailand and the Middle East as “huge”.
Engine is a unique model among neobanks that tend to delve deeper into consumer-focused apps and services. Starling is betting it can sell the technology to other banks.
Romania’s Salt Bank and Australia’s AMP are Starling’s first Engine customers.
Bhatia said he hopes to “double down” on the engine strategy and capture market share in the enterprise software space.
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