Starling Expands Southampton Operations

The challenger bank looks set to increase in size

February 26, 2021
Starling Expands Southampton Operations
CompareBanks is reader-supported. When you click through some links on our site, we may earn an affiliate commission. Learn more

Starling Bank has announced that it is to expand its Southampton base, bringing more jobs to the south coast as the bank continues to grow in popularity in the UK.

When Starling decided to expand outside of London in 2019, Southampton was the first location chosen. It is now the site of around 220 workers at the Town Quay site, primarily made up of customer service and technical roles.

There’s no confirmation yet on the size of the expansion but it involves taking extra office space due to the demand of the growing customer base.

Review your own bank

Dedication To Southampton

Anne Boden, the founder and Chief Executive of Starling, said “We’re very, very happy with Southampton. We’ve actually committed to taking a bit more space in Southampton.”

Southampton was our first centre outside London. We’re right on Town Quay which is a great location.

It’s a very unusual location, it’s not a business park. When we decided to look for our first location outside London, we wanted not to go to the typical locations. We wanted to go to a real city and Southampton was a wonderful, semi-industrial place that had a great university.

Despite Southampton being the first location outside of London for the bank, it isn’t the largest. Starling currently has 570 employees in London, 316 in Cardiff and 6 members of staff in their Dublin office.

Future Growth Predicted

At the same time as announcing the new jobs in Southampton, Boden stated her belief that the bank will increase its share of the small and medium-sized enterprise market over the next five years to 18%.

That would require a significant increase from the current market share of 4.4% of UK SMEs. However, signs are good, with an established 2.2 million customer base. The bank has given out almost £1.5 billion in bounceback loans over the course of the Coronavirus pandemic, with around a third of those in London.

Starling Fundraising

The predictions come a month after it was revealed that fund management group Fidelity was in talks to lead a £200 million fundraising for Starling, themselves taking a £100 million stake in the bank in what should be seen as a major vote of confidence.

Nothing has been formally agreed yet although talks are known to be ongoing, following Starling’s first monthly profit last October despite the bounceback lending. Various sources indicate that other blue-chip investors are also interested in a stake in the bank.

At the time, it was reported that Lloyds Banking Group and JP Morgan Chase were interested in buying the bank outright but now Starling’s directors have decided to seek funding with a view to being listed publicly in the next couple of years.

Ian Lewis
Ian Lewis
Ian is an experienced writer with 15 years’ experience working in journalism and marketing. He’s worked in-house in financial institutions as well as writing freelance pieces for a variety of banking and financial trading websites.

Related Articles

Banking Hub Trial Expands
Banking Hub Trial Expands
A trial scheme that explores the feasibility of banking hubs – shared bank branches...
December 23, 2021
Nationwide Hit With Payments Issue
Nationwide Hit With Payments Issue
Nationwide has been hit with a technical issue that caused delays both to inbound...
December 22, 2021
Bank of England Raises Interest Rate
Bank of England Raises Interest Rate
The Bank of England has raised the interest rate for the first time in three years,...
December 19, 2021
Banks Commit To Cash Access
Banks Commit To Cash Access
A new venture is set to be unveiled next week which will see Britain’s largest banks...
December 13, 2021

Mentioned Banks

About JP Morgan JP Morgan Chase and Company is an American multinational investment bank and financial services company. It is the largest bank in the United States and the sixth largest...
Learn More
About Lloyds Bank Lloyds Bank is a British retail and commercial bank. One of the ‘Big Four’ clearing banks, it was founded in Birmingham in 1765. It is the largest retail bank in...
Learn More
Winning Britain's Best Bank 2019, Starling is arguably amongst the biggest and most well-known challenger banks. Starling’s vision is to ‘create a better bank for everyone’. Is...
Learn More
Overview First Glance Chase is a digital challenger bank in the UK, first launched in 2021 by JPMorgan, one of the largest banks in the US. With over 56 million existing customers...
Learn More

Comments

Leave a Comment