8.6 C
New York
Saturday, January 23, 2021
Home Challanger banks JP Morgan and Lloyds set sights on Starling, Times Reports

JP Morgan and Lloyds set sights on Starling, Times Reports

Major players like JPMorgan Chase & Co. and Lloyds Banking Group Plc have expressed interest in buying the challenger Starling Bank Ltd., the Times reported.

This comes just a week after Anne Boden, CEO, Starling Bank, announced that the digital bank has reached break-even and is on the road to profitability.

Read also: Starling Bank moves into profit according to Anne Boden

With nearly 1.8 million accounts, £4 billion in deposits and £1.5 billion of lending, Starling generated £9 million of revenue for the month of October 2020, which represents an annualised run rate of £108 million.

Starling was founded by Anne Boden in 2017 and its main shareholders include Bermuda-based Harry McPike and Merian Global investors. Starling has raised £363 million and closely guards its valuation, which is estimated to be more than £1 billion.

If the Starling ended up being purchased, it could lead to the first big merger of an established lender with a start-up in Britain. Recently TSB, a commercial bank in the United Kingdom and a subsidiary of Sabadell Group, was put on the block by its Spanish owner.

JP Morgan, America’s biggest bank, is understood to have talked about taking on Starling as it prepares to launch its consumer bank in the UK in the new year. 

However, a spokeswoman for Starling said: “Anne has always said she will never sell to a big bank. An IPO is still in our sights.” Spokesmen for JP Morgan and Lloyds declined to comment when contacted by Bloomberg.

Avatar
Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Monzo Bank founder Tom Blomfield is leaving the company

Tom Blomfield who co-founded Monzo Bank 2015, is leaving the digital bank, citing "challenges" from the pandemic, TechCrunch reported.

UK Government voted down BNPL regulation bill

70 MPs have decided to vote down a bill which was supposed to regulate buy now, pay later companies like Klarna, Laybuy and Clearpay.

Curve raises $95 million as it eyes US expansion

London-based Fintech Curve secured $ 95 million in its latest investment Series C funding.

Challenger bank Revolut applied for UK banking license

Revolut has submitted an application for a banking license to the U.K. Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).