Challenger bank Starling launches business accounts as it eyes £120m RBS competition pot | City A.M.

Challenger bank Starling is launching business accounts as it targets a pot of cash being paid out by RBS.

The product will make Starling the first mobile-only bank to have business accounts.

It comes as the company targets “Pool A” of grants worth up to £120m for the development of business current accounts. The grant funding will come from Royal Bank of Scotland as a remedy for competition concerns stemming from its bailout by the UK government.

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“In a market with almost no meaningful competition, entrepreneurs and small business owners have for too long been marginalised and taken advantage of by big banks,” said chief executive Anne Boden.

“Having spent the past year building an award winning bank and personal current account, today we’re happy to announce that we’re launching a business account which offers all of the same great features and more to small businesses and entrepreneurs.”

Business which sign up for a Starling account will be able to use accounting and invoicing platforms from select partners through an in-app marketplace.

Starling recently also announced its intention to launch a solution which will allow businesses to accept card payments directly into their Starling account.

Throughout the year, new features will also be added to the product to cater for more complex businesses. This will include being able to make cash deposits at the Post Office.

Read more: Digital Innovators: Q&A with Starling Bank chief executive Anne Boden