UK’s first mobile-only current account bank Starling to raise £40m for international expansion

Starling Bank, the first mobile-only firm to launch a current account in the UK, is launching a new fundraising round aiming for £40m.

The challenger bank is looking to expand into Europe, and has engaged boutique advisory Quayle Munro to work on the funding round.

Part of the money raised will also be used to develop the existing current account, to include new features for managing personal finance.

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“As Starling Bank continues to grow, and our customer base expands every day, this funding will help us consolidate our current share of the market and drive our growth both in the UK and internationally,” said Anne Boden, the bank’s chief executive.

“This is yet another stepping stone in Starling’s mission to realign the retail banking sector in the interest of consumers. On each occasion I set out to secure further funding I am reminded of my objective to ensure everybody has an offer of a healthier financial life.”

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Starling’s initial fund-raising round totalled a £48m investment from quantitative trader and private investor Harald McPike, in 2016.

The challenger began it’s push beyond England in June this year when it received a banking passport for Ireland.

An increasing number of fintech banks and quasi-banks (which don’t have a banking licence so can’t make loans or provide overdrafts, but do allow customers to deposit money in a current account-like product) have been popping up in recent months.

Examples include “selfie bank” Monese, cryptocurrency offeror Revolut and peer-to-peer Zopa.

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