Starling Bank: against COVID-19 Company
Entity: Starling Bank
Category: FinTech and Digital Economy
Description: Starling Bank provides a mobile banking application and a debit card that enable users to manage their finances. Its application allows users to send money to their friends, save together for trips, and have total control at their fingertips. Anne Boden founded Starling FS in 2014 that became Starling Bank in July 2016.
1. Project: Connected card
Summary: Starling Bank has rolled out the “Connected card” a second debit card connected to your existing Starling current account that you can give out to friends, family and carers to shop on your behalf if you are self-isolating. Astutely, the card is protected with a balance limit of £200 and can be tracked and administered within the Starling mobile app.
2. Project: Bounce Bank Loans to SMEs
Summary: Starling Bank is accredited by British Business Bank to offer Bounce Bank Loans to SMEs. Starling, the digital bank, has been accredited by the British Business Bank as a lender under the government-backed Bounce Back Loan Scheme (BBLS). This will enable it to offer term loans of between £2k and £50k to small and medium-sized enterprises (SMEs) that are struggling financially as a result of the coronavirus emergency. Applications started on Monday 11th May 2020 via Starling’s secure online banking platform. Under BBLS, the rate of interest is fixed at 2.5%. The loan will be interest free for the first 12 months, as the interest will be claimed by Starling, on customers’ behalf, from the government. So businesses will benefit from no upfront costs and no repayments in the first year. SMEs can borrow up to a maximum of 25% of their annual turnover. No personal guarantees will be required, so borrowers and guarantors will not have to put up their principal private residence as security. The loan term is six years, but customers can pay back the loan sooner with no early repayment charge. SMEs can apply for a Starling BBLS term loan, if their business: uses Starling as their main business account; has been negatively impacted by coronavirus; was established and trading by 1 March 2020.
+ Investors:
JTC Group
MerianChrysalis
Future Fifty
Capability and Innovation Fund
