Home music industry Starling Bank considers acquisition to increase lending to SMEs

Starling Bank considers acquisition to increase lending to SMEs


Starling Bank will “likely” acquire a lending platform within a year or two, its chief executive has revealed, as the challenger bank seeks to expand its loan issuance to small and medium-sized enterprises (SMEs).

Speaking at the LendIt Fintech Europe 2020 virtual conference in October, Managing Director Anne Boden said Starling Bank is rapidly expanding the SME side of its business and SME lending is now the largest segment of its overall portfolio. .

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“We grew up really fast,” she said. “And despite the fact that we are developing our own origins, we will always be looking for something to acquire and we will probably acquire something within the next two years.”

She also pointed out that Starling currently has around £ 3.6bn in trust funds, thanks to this growing customer base.

“We make our own loans and we give government backed loans, but we also fund other organizations both in the non-bank sector and in the peer-to-peer sector,” she said.

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“And in these sectors, there is a real lack of funding at the moment. But we have an appetite for it and we have some very nifty processes to actually work with these organizations, provide them with funding, take those assets off our books and then together we can serve the market more effectively.

“You have stress in the P2P market, but as a bank that has access to funding, government programs and liquidity, that’s a huge advantage. “

Starling already has existing partnerships with P2P lenders Funding Circle and Zopa.

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