Starling Bank has appointed Raman Bhatia, the CEO of energy supplier Ovo, as its new permanent Chief Executive Officer. Bhatia will take over from John Mountain, who has been serving as the interim CEO since the firm's Founder, Anne Boden, stepped down.

Bhatia's background is a blend of experience in established financial institutions like HSBC where he led the lender's digital banking arm and the energy sector with Ovo.

According to the press release, his expertise is expected to enable Starling Bank to attract a wider range of personal and small business customers in the UK. Additionally, Bhatia will oversee the growth of Engine, Starling's banking software platform aimed at international markets.

Focus on Starling's Banking Software Platform

David Sproul, the Chairman of Starling Bank, mentioned: "We see significant opportunities for Starling under Raman's leadership as the economy stabilizes, as our truly differentiated offering for personal and small business customers wins market share in the UK, and as our Engine by Starling Software-as-a-Service business secures further international contracts."

Bhatia's leadership will focus on expanding Engine globally. This software-as-a-service arm of Starling Bank provides technology solutions to other financial institutions. He will focus on securing international contracts and developing this revenue stream.

Starling stands out amongst its peers like Monzo and Revolut for achieving profitability since 2022, primarily due to its focus on lending and business banking.

Planned Public Listing

However, the bank's valuation has dipped from £2.5 billion to roughly £1.5 billion following a share sale by Jupiter Fund Management, the Financial Times reported. This, coupled with slower customer growth compared to rivals like Monzo and Revolut, presents a challenge to the bank.

Last year, the bank reported a stellar performance, boasting a six-fold increase in pre-tax profits and doubling its revenue. However, the road to a public listing has its potential hurdles. According to a report by CITYA.M., the initial valuation of Starling in 2022 was £2.5 billion, but reports suggest it might have dipped since then.