Starling Bank

Executive Summary

Starling Bank is a top British digital bank that helps more than 4 million people and handles 7 percent of all small business banking. It was the first online-only bank to reach steady profits, reporting $950 million in yearly sales and $200 million in take-home pay. The company uses its own custom-built software system to manage $6 billion in total loans and keeps the cost of holding customer money low because it has a full UK banking permit. A major part of its plan to grow is its software platform called Engine, which brings in extra money by selling its technology to banks in other countries. Even though the bank spends very little money compared to what it earns, investors still need to watch out for heavy local competition and the chance that small business borrowers might not pay back their loans. An upcoming public stock listing for this company will act as a major sign for the tech industry, showing if digital banks can truly grow long-term to beat the existing big players. The mix of high-profit lending and selling software makes Starling a very careful and well-run business before it joins the stock market.