Starling Expands BaaS Deployment Across Europe
The news: Starling will expand its Bank as a Service (BaaS) business to mainland Europe, according to AltFi. The British neobank’s initial markets will include France, Germany, Spain and the Netherlands.
- Its French expansion, reported for the first time through Les Echos is planned for 2022 and already understand a hiring surge.
- The neobank has made its initial Entry of BaaS in 2018 on its domestic market and its customers include now financial services companies like Grape, Piggy bank, and CurrencyCloud.
More on this: Starling CEO Anne Boden describe her vision of her company’s BaaS offering – she calls it Starling as a service-in a “letter to herself” in a LinkedIn post.
- Boden views the BaaS market opportunity as broad, citing retail, healthcare, utilities, and manufacturing sectors. as sectors that could benefit from Starling’s product.
- She highlighted how the neobank can benefit companies that adopt its BaaS product, highlighting the benefits in terms of convenience, cost and complexity.
- Boden also noted that Starling can take on the tedious tasks of adding financial services, like fighting money laundering and knowing your customers’ regulations, while customers only need to deploy the features. .
Trend research: Starling’s expansion is the latest case of a financial services company entering or diversifying into the BaaS market:
- British neobank fellow Monese announcement earlier this month, it is launching into BaaS, with customization choices for customers in various countries.
- French autonomous BaaS supplier swan revealed thart he raised Series A funds to propel breakthroughs in several European markets.
- australian neobank Volt To shifted focus at BaaS in a context of upheaval in the country’s consumer neo-banking market.
The big takeaway: Neobanks like Starling can deploy BaaS for areas they have experience in, like core banking technology and regulatory maneuvers, without having to establish a front-end user experience.
It could also allow them to create a promising line of business with established non-financial companies. For example, a 2020 survey by Capgemini and Efma shows that banking customers want access to banking products from healthcare providers, large tech companies and retailers.