Starling Bank eyes US lender amid expansion plans

UK-based challenger bank Starling is reportedly exploring a move into the US market through the acquisition of a nationally chartered American lender, according to Bloomberg.

The mobile-only bank is said to be targeting institutions primarily on the East Coast, with at least $2 billion in assets. The acquisition would serve as a key step in Starling’s expansion strategy and allow it to deploy its proprietary technology platform within a legacy banking framework.

Per the Bloomberg report, Starling is specifically eyeing banks with outdated technology, positioning its acquisition as an opportunity to revamp and modernize operations using its in-house systems. The move would echo a similar strategy by UK banking peer OakNorth, which earlier this year agreed to acquire Michigan-based Community Unity Bank.

In preparation for a US launch, Starling has already begun recruiting American banking professionals and earlier this year established a Delaware-based subsidiary to facilitate its SaaS (Software-as-a-Service) offering to mid-sized banks across North America.

“We’ve been successful in Europe and in Australia, so now is the right time for us to start competing in the exciting North American market,” Starling CEO Raman Bhatia said at the time.

While the bank has yet to confirm any specific targets, the expansion signals Starling’s growing ambition to become a global banking player, leveraging technology as its core differentiator.