Fintechreivews.co.uk reports that UK-based challenger bank Starling is looking for further investment to spread expand its operations further into Europe.
Starling bank was given banking passport rights in Ireland in June, making its first expansion into the European Union. The bank’s initial funding round started in January 2016 and raised £48 million.
Starling bank looks next for an investment of £40 million to expand its operations further into the European Union.
The bank has no physical branches and claims to be the first challenger bank of its kind to offer current accounts to consumers.
What are challenger banks?
Challenger banks are banks that are built on the latest technology. They utilise this technology to provide better services to customers than legacy banks.
With the public’s loss of faith in legacy banks like Barclays, Lloyds and NatWest, challenger banks offer consumers an alternative.
Although challenger banks are designed to disrupt the lending industry, traditional banks have responded with newer technologies. Even though legacy banks have been trying to keep up with modern technologies, they have trouble effecting change in due time.
In the UK, challenger banks have been steadily growing in popularity. Here at fintechreviews.co.uk, we understand that this is due to events like the 2008 financial crisis and mis-selling of PPI.
Even whilst the UK taxpayers were bailing out the legacy banks, the bankers received increases in bonuses and salaries as if they were doing a good job.
What does Starling Bank offer?
Starling Bank offers multiple advantages for customers. With a current account with Starling Bank, the customer can access an overdraft that is completely controlled by themselves. The interest rates are lower than with a traditional bank, and Starling boasts that there are no other fees at all when using an account.
Even when using an account abroad, there are no charges and the exchange rates are MasterCard’s most up-to-date rates.
Many legacy banks have introduced mobile banking apps, but many like the one offered by NatWest don’t offer much information and don’t update very often.
Unlike the legacy banks, when you use your card with Starling Bank, your balance is instantly updated with exact charges.
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