The digital banking app plans to allow businesses to switch to Starling using the Current Account Switch Service.
Fintech disruptor Starling Bank is busily upgrading its business-facing service.
The bank is attempting to open its business accounts – launched in March – to a wider range of businesses. As of today, customers can run more than one business off Starling, using multiple accounts.
Similarly, the firm will soon launch multi-director accounts, meaning that companies with more than one director can also make use of the service.
Those holding a business account with Starling are not currently able to open a personal account. The bank is also planning to change this.
But perhaps most significantly, Starling is also working to allow businesses to join the bank using the Current Account Switch Service (CASS) – which automatically transfers all direct debits, standing orders and balances between banks within 7 days. The start-up is currently testing CASS for its business service and has advised customers to ‘stay tuned’. Consumers can already use CASS to switch to the bank.
Starling and Monzo, in particular among digital banking challengers, are vying not only to win customers but to become those customers’ primary bank. Having a banking licence certainly helps, but the importance of CASS shouldn’t be underestimated. As we’ve written recently, inertia is a difficult thing to overcome when considering switching banks, but the Bacs-run switch service helps to smooth the transition.
Recent numbers from Bacs showed Halifax as the biggest winner of new accounts using CASS, but a source from Starling pointed out that it led the way in terms of proportionate gains (i.e. number of new customers in relation to its existing customer base).
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.