UK banking platform Starling Bank announced on Friday it has been awarded a £100 million grant from the Capability and Innovation Fund (CIF). According to Starling Bank, the grant comes from a £775 million fund created as a condition on RBS for accepting £45 billion bailout during the financial crisis. Starling Bank is notably one of three recipients of the first round of grants.
Starling Bank reported it is predicting it will make £913 million of balance sheet lending available to SME customers by the end of 2023. It expects to achieve a 6.7% market share within five years. The digital bank also revealed that since launching its mobile banking app in May 2017, it has opened 500,000 current accounts, which includes more than 30,000 SME business accounts signed up in less than a year.
“The £100 million grant will accelerate Starling’s ability to reshape the SME banking market, further invest in proprietary technology and build out its UK-based customer service and support team. Because Starling understands that many SMEs want to manage their banking online as well as through mobile apps, it will launch a web portal for SME banking customers later this year.”
“Starling Bank is delighted to have received this award. It will accelerate our ability to reshape the SME banking market. Starling will deliver an advanced fully-digital offering that connects SMEs with the financial solutions they need to thrive. This is the opportunity to bring new technology and a new approach to the sector.”