By Roger Baird on Wednesday 13 February 2019
The app-only bank says the agreements are an example of Open Banking in action.
Digital-only bank Starling has added three new firms to its banking services business arm, as it exploits its cutting-edge technology.
The London-based firm has signed deals Telleroo, PelicanPay and Vitesse, who are all provide business-to-business payment services to corporates and other institutions. The deal allows the firms to make real-time payments and settlements with transparent pricing schemes.
The move comes as Starling also said it raised £75m from investors to fund new services and its push into European markets, such as Ireland, Germany and France.
The trio of banking services deals Starling has signed operate under Open Banking, Payment Services Directive and application programming interface (API) rules.
A change in European Union law at the start of the year has ushered in Open Banking, which means consumers can allow businesses, other than their bank, to access their financial data.
Advocates say this potentially allows customers to get better deals, such as cheaper overdrafts, and speed up switching between banks.
Starling head of banking services Julian Sawyer said: “Starling will be providing Telleroo with payroll payment services for its clients. With Vitesse, it will be enabling insurance claim payouts, while with PelicanPay it will process payments for a range of clients, including fintechs and third party providers.”
Vitesse chief strategy officer Stefan Burkwood added: “The Starling API will enable us to process these payments in an efficient and economical way, allowing us to grow our volume seamlessly.”
The digital lender has previously signed banking services deals with the Department of Work and Pensions and German consumer investment fintech Raisin.