Technology is the driving force behind making processes easier for consumers and businesses alike when managing financial services, hence the advent of fintech. And as a digital bank accessed through a simple and secure app, Starling is at the forefront of financial innovation, so it’s no wonder the firm has caught the eye of investors.
In a series C round, investment firm Merian Chrysalis has invested £60m into Starling Bank, a deal that was overseen by asset management firm Merian Global Investors. That wasn’t all though – for its next trick, another £15m was conjured up by Starling’s existing investor Harald McPike, totalling the injection at £75m.
The new investment will help fund Starling’s global expansion, which will start with a push across Europe as it looks to hit one million customers by the end of 2019. The cross-continent move will build on some 460,000 personal accounts and 30,000 SME accounts that have been opened in the UK so far since its 2014 launch as a digital bank. And not wanting to forget Brits as it looks further afield, the cash will support existing UK products to develop further.
Starling introduces new features monthly, the latest of which allows customers to transfer euros back and forth for free. Other services include the ability to freeze lost cards, so no transactions can be made and start a joint account with five minutes.
Nick Williamson, co-portfolio manager of Merian Chrysalis, said: “Financial services is a market undergoing considerable change. The Starling team has developed a highly impressive and efficient platform, which we believe positions it well to continue to take share in core banking markets, as well as the ability to offer innovative new services in the future.”
As we’ve previously reported, when dealing with finance, physical documents and receipts are becoming a thing of the past. With such vision for change and venture capital to make it happen, we’re sure to see Starling flying to phones globally.