Starling to become the first profitable challenger bank
Starling Bank has become the first digital challenger bank to break even and is on course to become profitable, its latest trading update shows, as rivals continue to record significant losses. AdvertisementStarling is the youngest of the digital challenger banks. The sector is fiercely competitive — Monzo’s Tom Blomfield worked at Starling before staging a walkout of top executives and forming the rival bank. Monzo reported losses of £115.4m last year, while Revolut’s losses grew to £107.3m in 2019, despite increasing customer numbers. Following the losses, the Bank of England issued a warning to challenger banks in the summer, saying that new banks had “underestimated the development required” to become successful.