By Ryan Weeks on 5th December 2017
Digital banking app poised to offer a broad range of products including loans, mortgages and ISAs.
Starling Bank has been granted permission to offer a wide range of financial services products to its customers in-app. These products include loans, insurance, mortgages, ISAs and other investment products.
The challenger bank claims to have become the first mobile-only bank to have been granted its unique blend of permissions.
Though rival firm Revolut also has a marketplace which features credit, insurance and wealth solutions, it is not yet licenced as a bank. Revolut’s permissions hinge primarily on the ability to provide payment services, while Starling holds permissions that allow it, for example, to make “arrangements with a view to transactions in investments”.
The key difference, as described by Starling, is that it will offer “engineered partnerships” – as distinct from simply allowing customers to transfer money into third parties.
“I founded Starling to empower consumers to take control of their financial life, and this licence will allow us to provide customers with easy access to products offered by other financial services companies from within the Starling app,” said Anne Boden, CEO of Starling Bank. “This gives customers transparency and choice – something which the big banks have kept from them for too long – and having an open API enables us to accommodate a huge diversity of customer requirements through a selection of financial services providers.”
Starling already boasts partnerships with fintech apps Moneybox, Flux, Yolt and Yoyo Wallet. While the new permissions will allow it to offer a wider range of financial services products, the products themselves will not be delivered by Starling, but by carefully selected partners. The combination of its new permissions and the impending launch of Open Banking in the UK stands to open up new opportunities for such partnerships to be formed.
Insurance AI & Analytics USA (June 27-28, Chicago) is the only forum bridging the gap between the analytical and data minds and the business transformation leaders. As carriers rush to meet customer demands and deliver continuous business growth without dramatically increasing costs, deploying innovative technologies such as AI, machine learning and advanced analytics can be the only way to remain competitive. But in order to deliver real value to the organization, these innovations must have a real application in the core business areas and directly improve operational efficiency and deliver a seamless customer experience