Starling Bank seeks to drive growth ahead of IPO

Starling Bank Prepares to Buy Lending Business to Drive Growth Ahead of IPO

  • Digital banking is backed by big companies like Fidelity and Goldman Sachs
  • He is looking for businesses ranging from small lenders to mortgage providers.
  • CEO Anne Boden said: “We have deposit balances that we need to run.”

Starling Bank is preparing to buy a lending company with the aim of stimulating growth ahead of an IPO.

The digital bank – which is backed by big institutions like Fidelity and Goldman Sachs – is looking for businesses ranging from small business lenders to mortgage providers.

Anne Boden, founder and managing director of Starling, told The Mail on Sunday: “We are looking for a new loan company. We are looking for one or more lending platforms. We have deposit balances that we need to work for us.

Anne Boden is the founder and CEO of Starling

Starling was launched in 2014 and is an app-based agencyless bank that provides digital services to its customers.

It has increased its client deposit base to £ 8 billion, while its loan portfolio stands at around £ 3 billion. Starling acquired Fleet Mortgages earlier this year for £ 50million in cash and stock, giving it a foothold in the buy-to-hire market.

Boden said: “We have acquired Fleet. It is very successful. We are likely to make one or more similar acquisitions in the same type of model. We expect there will be a lot of activity in the first half of next year.

The bank, which makes a monthly profit, is planning an IPO as early as the end of next year. Starling was valued at $ 1.5 billion (£ 1.1 billion) earlier this year. Boden hopes the IPO will take place in London.

She said: “A lot of FinTech companies would find it difficult to float in London because they are not profitable and lack good governance.

“But Starling is a bank, so we have tremendous governance and we are very profitable.”

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