UK-based Starling Bank’s software-as-a-service (SaaS) division, Engine, has achieved a significant milestone by partnering with Tangerine Bank, the digital arm of Scotiabank in Canada. This strategic collaboration underscores Starling’s objective to penetrate the North American market more deeply, especially as Tangerine seeks to modernize its digital banking infrastructure through Engine’s cloud-native platform. This development is poised to enhance customer experiences while streamlining operations for Tangerine’s employees.
The current partnership reflects Starling’s shift from its original European expansion strategy, which initially involved securing a European banking license. Instead, Starling decided to focus on its SaaS offering, Engine, expanding its reach on a global scale by leveraging technology to support banking partners worldwide. Historically, this pivot marks a sign of Starling’s adaptability and focus on technology-driven banking solutions rather than traditional banking licenses.
What Does the New Partnership with Tangerine Involve?
Starling’s Engine platform will handle Tangerine’s transition to a cloud-based banking solution, aimed at reducing operational costs and simplifying processes for employees. For the nearly two million clients of Tangerine, the upgrade will offer smoother and more intuitive digital services. The deal represents a crucial step for Engine, marking its first major client acquisition in North America.
How is Starling Expanding Its Influence in North America?
To bolster its North American presence, Starling has already established offices in Toronto and New York earlier this year. These strategic locations are part of Starling’s broader plan to potentially explore an Initial Public Offering (IPO) in the United States. The deal with Tangerine provides a platform for the company to showcase its capabilities in delivering digital banking experiences effectively.
Terri-Lee Weeks, President and CEO of Tangerine, expressed her commitment to leveraging Engine’s technology as a transformative tool for customer service enhancement.
“Tangerine chose Engine to help build the future of banking services for our clients – delivering a premier banking experience with intuitive, personalised features that evolve with client needs.”
Meanwhile, Sam Everington, CEO of Engine by Starling, sees the partnership as evidence of Engine’s capabilities.
“Engine’s technology and operating model is a tried and tested blueprint for building market-leading digitally-native banks.”
Starling’s Engine is not limited to Tangerine, as evident from its associations with Romania’s Salt Bank and Australia’s AMP mobile bank. With the UK-based business employing around 300 individuals and plans to recruit 100 more, the company strives to expand its presence and enhance its SaaS offerings further.
Starling Bank’s SaaS initiative with Tangerine signifies its efforts to broaden its foothold in the technology sector rather than focusing solely on traditional banking services. By providing cloud-based solutions, Starling is positioning itself as a critical player in digital transformation within the banking industry. The collaboration highlights the trend of banks embracing technology to innovate and meet evolving consumer needs.
