UK challenger bank Starling Bank is reportedly considering the acquisition of a US lender as part of its expansion strategy.
According to Bloomberg, the mobile-only bank is seeking to acquire a nationally chartered bank in the US, mainly located on the East Coast, with at least $2 billion in assets. Starling has already started hiring US bankers in anticipation of this move. Earlier this year, the bank established a subsidiary in Delaware to offer its SaaS infrastructure to mid-tier banks across North America.
“We’ve been successful in Europe and Australia, so now is the right time for us to start competing in the exciting North American market,” stated Starling CEO Raman Bhatia at that time. The Bloomberg report indicates that Starling aims to acquire a bank with outdated technology to leverage its advanced tech platform.
This potential acquisition would resemble the recent move by banking rival OakNorth, which agreed to acquire Michigan-based lender Community Unity Bank in March this year.