Starling Bank, a challenger bank in the United Kingdom, has announced its financial results for the fiscal year ending 31 March 2023, reporting revenues of £453 million, more than double the previous year's figure of £216 million. In addition, the institution's Founder, Anne Boden, announced it will be stepping aside as the CEO next month.
Starling Bank Profit Increases Sixfold
According to the press release published on Thursday, Starling Bank achieved record pre-tax profits of £195 million, marking a six-fold increase compared to the previous year's earnings of £32 million.
In addition, the bank experienced significant growth in lending, with total lending reaching £4.9 billion, which is up from £3.3 billion in the previous year. Moreover, customer deposits notably increased 17%, reaching £10.6 billion.
Boden thinks that the newest financial results demonstrate Starling Bank's ability to disrupt the traditional banking industry and solidify its position as a formidable player in the market.
"When I started Starling in 2014, I was told no one ever starts a bank, nobody wins market share and you'll never make a profit. Today's results prove them wrong," Boden commented.
Boden to Leave CEO Position at Starling
Along with the announcement of the financial results, the company informed that the Founder and CEO of Starling Bank will be stepping aside as the CEO on 30 June 2023. She will continue to contribute to the company's growth as a Non-Executive Director on the board.
John Mountain, who has been with Starling Bank for seven years, first as Chief Information Officer (CIO) and currently as Chief Operating Officer (COO), will assume the role of interim CEO and lead the bank into its next phase of expansion. In the meantime, Starling Banks is searching for a permanent CEO.
"Handing over my responsibilities to John Mountain will enable me to focus on my position as a shareholder, championing Starling and ensuring we hold true to our values and vision of changing banking for the better," Boden added.
Mountain highlighted the bank's unique position as both customer-led and technology-led. "We have firmly established a sustainable business model and I look forward to continuing our work of changing banking for good."
New Office for Challenger Bank
In a move to establish its presence in the North, Starling Bank has recently selected Barings' Landmark in Manchester as the location for its new office. This strategic decision by the digital bank aims to generate up to 1,000 job opportunities in various departments, such as operations, engineering, data science, and cybersecurity , contributing to the growth of the company.
With existing employment of 2,500 individuals across London, Cardiff, Southampton, and Dublin, Starling Bank has recognized Manchester as an ideal city for its expansion in the Northern region. The city stands out with its abundant pool of fintech talent, boasting the largest regional FinTech ecosystem in the UK.
Moreover, Manchester has been chosen as the home for the forthcoming Centre for Finance, Innovation, and Technology (CFIT), which will serve as a hub for financial innovation. This initiative aligns with the government's vision of establishing the UK as a leading technology and science powerhouse.
Last year, Starling Bank decided to ban all crypto transactions, quoting the "high risk" of crypto activities behind its move. This was not Starling's initial action against crypto, as the challenger bank had previously halted payments to crypto exchanges in May 2021. However, this time the move looks more permanent.
