UK-based challenger bank Starling is contemplating a listing on the New York Stock Exchange as part of its expansion strategy in the US.
According to a report by the Financial Times, this potential move could challenge the UK government’s efforts to rejuvenate its fintech sector. It also marks a departure from earlier statements made by former CEO John Mountain, who regarded London as the “natural home” for fintech. Following the departure of long-time founder Anne Boden, Mountain emphasized the company’s commitment to a London-based IPO, even seeking a London executive to lead such efforts.
However, Starling’s current CFO, Declan Ferguson, indicated to the Financial Times that while no final decision has been reached regarding the listing location, the US is being considered as a viable option. “We continue to observe what is happening externally with our peers and on the global stage concerning UK versus US stock markets,” he stated.
One motivation behind the interest in a US listing is the potential for achieving a higher valuation compared to the London market. Starling is also aiming to expand its operations in the US before any listing and has reportedly explored acquiring a US bank.
Other UK digital banks, such as Monzo and Revolut, are similarly focused on increasing their presence in the US. A decision by Starling to list in the US, rather than the UK, would likely be disappointing for the UK government and Chancellor Rachel Reeves, who have prioritized the growth of the fintech sector and an increase in IPOs.
This news follows a month after online money transfer platform Wise announced its move to shift its primary listing from London to New York.