Starling sets sights on US expansion via in-house tech sale – report

Core Insights - Starling Bank is expanding its presence in the US by offering its Engine software platform to American banks, targeting mid-sized banks and credit unions [1][2] - The bank has engaged Deloitte and PwC to assist in identifying potential clients for its cloud-based banking solutions [1][2] - Starling is exploring options to enter the US market, either through acquisition or by applying for a de novo license [3] Group 1 - Engine, Starling's Software-as-a-Service division, has been licensed externally since 2022 and is currently used by clients in Romania and Australia, with a ten-year contract signed with a Canadian client [3] - The US market presents an opportunity for Engine, particularly among small and mid-tier banks facing technology obsolescence [2][4] - Starling aims to secure a deal with an American institution within the asset range of $5 billion to $50 billion by early next year [4] Group 2 - Starling has established a Delaware branch and appointed Jody Bhagat as president of its US operations, with plans to invest $50 million to expand its New York office [5] - The bank's strategy includes creating a live case study for Engine in the US, either by re-platforming an acquired bank or establishing its own operations [4] - The focus for 2023 is on North America, particularly the US, where there is a growing need for transformation in banking systems [4]