The news: Starling will expand its banking as a service (BaaS) business to continental Europe, per AltFi. The UK neobank’s initial markets will include France, Germany, Spain, and the Netherlands.
More on this: Starling CEO Anne Boden outlined her vision for her company’s BaaS offering—she calls it Starling as a Service—in a “letter to herself” within a LinkedIn post.
Trendspotting: Starling’s expansion is the latest case of a financial services firm moving into—or branching out within—the BaaS market:
The big takeaway: Neobanks like Starling can deploy BaaS for areas in which they have experience—like core banking technology and regulatory maneuvering—without having to establish a front-end user experience.
This could also result in their creating a promising line of business with established non-financial companies. For example, a 2020 survey from Capgemini and Efma shows that banking customers are interested in having access to banking products from healthcare providers, big tech companies, and retailers.
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