Really good achievement of them, although I think the rug will probably be stolen from under them on the SME accounts if one big bank decides to drop fees for e-payments
Yes, it’s a good achievement to gain a significant number of business customers but it’s clear that their growth is still largely driven by personal accounts - so they will continue to do well, even if other banks drop/reduce transaction fees, and I don’t expect a business exodus would happen even then.
After all, the other bank would have to be offering something to actively entice customers (rather than simply equal Starling) and Starling is pretty compelling already, so that’s not too likely, I’d say.
Be interesting to glean how profitable the 460k business accounts are in comparison with the personal account business.
Starling certainly took its business account launch and management very seriously. Likewise, it put a serous face on its personal business (with prominent costly tv exposure).
I’m no poster-boy, but I’d be most surprised if they’ve dropped any clangers on the way. Focused, methinks.
The increase in business accounts is partly down to the bounce back loans (COVID recovery, government backed loans).
Starling done a very good job of promoting these and took on new accounts just for the loan. I know people who signed up just for the loan element.
But even then, that equals income at little expense to the bank itself I’d imagine, as I believe the loan itself was funded by the government and distributed via banks.
That said, they have also been critisised for their processes surrounding it, by the government
Good to see starling reach the three million mark.
Personal accounts I believe aren’t very profitable in general, although with the slow speed of Starling’s rate increase, maybe they’re making quite the mint from it currently:
I do, NatWest for example give you free access to FreeAgent if you have an account with them. Seems like a no-brainer.
Wasn’t the main critique that they were requiring personal guarantees, of which the government pressed aren’t allowed to be requested under the scheme
Had to go and look this up, but it seems to come down to a “lack of checks” -
the bank was accused by former minister Lord Agnew of failing to properly review borrowers before handing out taxpayer-backed loans