Digital Banking

The digital bank has a share of 2.6 per cent of UK SME banks' customers and £ 500 million on SME loans on its balance sheet.

Image source: Starling Bank

Starling Bank has raised £ 40 million in a round led by existing investors JTC and Merian Chrysalis.

The latest capital injection comes after the Challenger Bank raised £ 60m in February, increasing Starling's total to £ 100m so far this year and £ 363m since 2014.

Starling says the latest funding will be used to "continue its rapid growth and help provide the need for support to small business customers who have been hit by the coronavirus need."

Anne Boden's digital bank now counts 2.6 percent of SMEs & # 39; s & # 39; t UK as Starling customers and it has almost £ 500 million on SME loans on its balance sheet, taking its total liabilities to almost £ 1 billion.

To date, the challenger bank has 155,000 business accounts, which means it has collected 55,000 new customers since the beginning of February – no doubt accelerated by coronavirus.

Anne Boden, founder and CEO of Starling Bank, said: "This additional funding from our existing investors demonstrates their commitment to Starling and to our small businesses and personal customers who do not need our support now more than ever."

According to Starling, it has also more than doubled its user deposits over the past six months, with the total amount being held to more than £ 2.4 billion.

Starling first became a CBILS accredited lender in mid-April and has, according to the latest figures, distributed £ 363 million in CBILS and Bounce Back Loans.

However, it has not all been smooth sailing for the bank, because it came under fire when it stopped accepting new businesses for one-man trading due to "record application" on May 14, 2020.

Despite this, Starling worked with other accredited fintech, Funding Circle, to provide the eligible creditor with a £ 300m loan facility for SMEs.

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