One of the UK’s emerging digital based challenger banks, Starling has announced it has raised $70 million from Harald McPike, the founder of Bahamas-based quantitative investment manager QuantRes. The funding round comes as the bank is still awaiting regulatory approval but the funding suggests that the bank will eventually receive full regulatory approval and move to compete with other new entrants as well as established providers.
Commenting on the announcement, Anne Boden, CEO of Starling Bank said,
“It was important to us to have an investor with not just the financial strength but who also shared our ambition of empowering people with meaningful insight into their own financial information. With his background in algorithmic trading, risk management and technology, Harald sees the significant potential of technology in the retail banking sector. His commitment of $70 million is the catalyst needed to propel Starling’s launch.”
While Starling is just one of many new entrants into the UK retail banking landscape and that the new digital bank faces and uphill battle to win over consumers from other new players as well as established providers, the funding shows that at least one investor believes that the UK retail banking landscape could shift in the years ahead in favor of new entrants.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service at Mercator Advisory Group
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