Today, we have the honor of speaking with Anne Boden, the founder and CEO of Starling Bank, a leading UK-based digital bank that has transformed the banking landscape in Europe. With over 30 years of experience in the banking industry, including senior leadership roles at Allied Irish Banks, RBS, and ABN AMRO, Anne took the bold step of founding Starling Bank in 2014. Her vision to create a bank that truly serves customers’ needs through technology has led to Starling becoming one of the UK’s fastest-growing banks with over 3 million personal and business accounts.
The Interview
Background and Vision
Q1: Anne, thank you for joining us today. Your journey from traditional banking to founding Starling Bank is fascinating. What was the pivotal moment that made you decide to start a digital bank from scratch?
Anne Boden: After the financial crisis of 2008, I saw firsthand how slow traditional banks were to adapt to new technologies and changing customer expectations. The pivotal moment came when I realized that trying to change existing banks was like trying to change the direction of a super-tanker. In 2014, I decided that building something new from the ground up would be the only way to truly create a bank fit for the 21st century. It was about bringing together banking expertise with modern technology to build something that genuinely put customers first.
Q2: Starling was one of the first challenger banks to receive a full UK banking license. How important was this strategic decision versus going the e-money institution route that some of your competitors initially chose?
Anne Boden: Securing a full banking license was absolutely fundamental to our strategy. We wanted to be a real bank, not just a financial technology company. Having a banking license meant we could offer protected deposits, lend from our own balance sheet, and have a sustainable business model from the start. It took longer and required more capital, but it gave us credibility, sustainability, and independence. We didn’t want to be just a flashy front-end relying on other banks’ infrastructure behind the scenes.
Business Model and Growth
Q3: Starling has achieved profitability relatively quickly compared to many fintech companies. What were the key decisions that contributed to this financial success?
Anne Boden: From day one, we focused on building a sustainable business rather than just chasing growth at all costs. We made several key decisions: first, developing our own technology stack in-house gave us better economics than licensing third-party systems. Second, we focused on driving primary account relationships where customers deposit their salaries, not just secondary accounts. Third, we expanded into SME banking, which has better economics than just consumer banking. And finally, we’ve been disciplined about customer acquisition costs, growing largely through word of mouth rather than expensive marketing campaigns.
Q4: The SME banking segment has become a significant focus for Starling. What prompted this direction, and how has it contributed to your overall business strategy?
Anne Boden: We initially launched with consumer accounts, but we quickly saw an opportunity in SME banking. Small businesses were being dramatically underserved by incumbent banks – facing clunky interfaces, slow account opening processes, and poor customer service. When we started exploring the market, we realized we could make a real difference with our technology. The decision has been transformative for our business. SME banking now accounts for a significant portion of our lending and deposits, and these customers tend to be more engaged and contribute more to our economics than the average retail customer.
Technology and Innovation
Q5: Starling built its core banking platform in-house rather than relying on third-party providers. What advantages has this approach provided?
Anne Boden: Building our technology stack from scratch was one of the best decisions we made. It gives us complete control over our destiny and allows us to innovate rapidly. We’re not constrained by legacy systems or dependent on vendor roadmaps. Our engineers can deploy code multiple times a day, whereas traditional banks might do updates quarterly. It also means we can design the entire customer experience from end to end. The economic advantage is significant too – we don’t pay expensive licensing fees, and our cost-to-serve is a fraction of traditional banks. Of course, it required significant upfront investment, but it’s paid off tremendously.
Q6: How do you maintain the right balance between continuous innovation and maintaining the stability that’s essential for a bank?
Anne Boden: This is a fascinating question because it goes to the heart of what makes a successful fintech bank. We’ve created what I call a “two-speed” organization. Our core banking ledger, payment systems, and security infrastructure are treated with the utmost care – changes are thoroughly tested, and stability is paramount. Around this stable core, we have areas where we can innovate much more rapidly – customer features, marketplace integrations, and user experience improvements. This approach lets us be both a rock-solid bank and an agile technology company. Our robust engineering culture and automated testing capabilities are also essential to maintaining this balance.
Competition and Market Positioning
Q7: The European neobank space has become increasingly crowded. How do you view Starling’s positioning compared to competitors like Revolut, Monzo, and N26?
Anne Boden: We’ve always charted our own course rather than following competitors. While some neobanks have focused on rapid international expansion or adding numerous product verticals, we’ve been more deliberate in our approach. We focused first on building a sustainable UK bank with strong unit economics. Our target customers are different too – we appeal to slightly older demographics than some competitors, with higher average balances and more complex financial needs. We see ourselves more as a digital bank competing with traditional high street banks rather than as a specialized fintech product. Our business banking focus also sets us apart from many competitors who remain primarily consumer-focused.
Q8: Traditional banks have been investing heavily in their digital offerings. How do you maintain your competitive edge as they improve their technology?
Anne Boden: Legacy banks face what I call the “innovator’s dilemma” – they have existing infrastructure, organizational structures, and customer bases that make radical transformation extremely difficult. Even with significant investment, they’re constrained by core banking systems that are often decades old. Our advantage isn’t just having a mobile app – it’s our entire technology architecture, organizational culture, and business model that are built for the digital age. We don’t have branches to maintain or legacy systems to support. That said, we never underestimate our competition, and we know we need to continue innovating. The gap is narrowing in some areas, but we’re continuing to push the boundaries of what banking can be.
Regulatory Landscape
Q9: The regulatory environment for fintech in Europe has evolved significantly since you founded Starling. How has this impacted your business, and what regulatory changes do you anticipate in the coming years?
Anne Boden: The regulatory landscape has indeed evolved significantly. When we started, there was no real playbook for digital banks. Regulators have become much more comfortable with digital-only banks, partly due to pioneers like Starling demonstrating that we can operate safely and responsibly. Initiatives like Open Banking and PSD2 have created new opportunities, though implementation hasn’t always been perfect.
Looking ahead, I expect increasing focus on operational resilience, particularly around cloud infrastructure and third-party dependencies. We’ll likely see more scrutiny around AI governance as banks deploy these technologies more widely. Consumer protection in areas like crypto assets and BNPL will continue to evolve. Post-Brexit, we’re seeing divergence between UK and EU regulations, which creates complexity but also opportunities. Overall, I believe well-regulated fintech is good for consumers and the financial system, so we embrace sensible regulation.
Risk Management and Lending
Q10: Starling moved into lending more cautiously than some traditional banks. How do you approach credit risk, particularly given the economic challenges of recent years?
Anne Boden: We’ve been deliberately measured in our approach to lending. We started by understanding our customers deeply before extending credit – many joined us for our spending insights and user experience before we offered them loans. Our technology gives us advantages in assessing risk – we can analyze transaction patterns and cash flow in ways that traditional banks with siloed systems struggle to match.
During economic challenges like the pandemic, our modern systems allowed us to rapidly adjust our underwriting criteria and support customers effectively. We also benefited from not having legacy loan books in sectors like unsecured consumer credit that were hit hardest. Our focus on business lending through the government-backed schemes during the pandemic proved to be both helpful to the economy and commercially sound for us. Going forward, we’ll continue expanding our lending activities but always with an appropriate risk appetite and strong fundamentals.
Customer Experience and Service
Q11: Starling has consistently received high customer satisfaction ratings. What are the key elements of your approach to customer experience?
Anne Boden: Customer experience is truly embedded in our DNA, not just a department. Several elements have been crucial: First, we designed the bank with real customer problems in mind, not product silos. Second, our technology allows us to solve customer issues quickly – our customer service team has access to powerful tools and isn’t constrained by legacy systems. Third, we’ve invested in UK-based customer service rather than offshoring, which allows for better quality interactions.
Perhaps most importantly, we listen to our customers systematically. Our product teams regularly review customer feedback, our executives read customer comments, and we iterate quickly on areas that need improvement. We also make decisions that might seem commercially counterintuitive in the short term but build trust – like not charging unarranged overdraft fees or making it easy for customers to block gambling transactions. This customer-centric approach builds advocacy that’s more valuable than any marketing campaign.
International Expansion
Q12: Starling has focused primarily on the UK market while some competitors pursued aggressive international expansion. What factors influenced this strategic choice?
Anne Boden: We made a conscious decision to go deep in the UK rather than wide across multiple markets. Banking is fundamentally a local business with unique regulatory requirements, customer expectations, and competitive dynamics in each market. We saw an opportunity to build significant scale in the UK before expanding internationally.
This approach has allowed us to develop a comprehensive product set and achieve profitability faster than if we’d spread our resources across multiple markets. The UK is also one of the most competitive and sophisticated banking markets globally, so success here is a strong foundation. That said, we have started our European expansion through our Banking as a Service offering, which allows us to enter new markets in a capital-efficient way by partnering with local entities. International growth remains part of our long-term strategy, but we’re pursuing it in a measured way that builds on our strengths.
Corporate Culture and Leadership
Q13: As a female founder in the male-dominated worlds of both banking and technology, you’ve broken significant barriers. How has this influenced your leadership approach and Starling’s corporate culture?
Anne Boden: My experience as a woman in finance and technology has certainly shaped my leadership style and the culture we’ve built at Starling. I’ve focused on creating a meritocratic environment where good ideas win regardless of who suggests them. Being an outsider in many ways has made me more open to challenging industry conventions and thinking differently about problems.
Diversity has been a priority from day one – not just gender diversity but diversity of thought, background, and experience. Nearly 40% of our senior leadership team is female, which is rare in both banking and technology. We’ve worked hard to build inclusive hiring practices and create an environment where everyone can thrive. I believe our diverse perspectives have been a competitive advantage, helping us to understand a broader range of customer needs and avoid groupthink in decision-making.
That said, I try not to overemphasize my status as a female founder – ultimately, Starling succeeds because we’ve built great products and services, not because of my gender. I hope our success inspires others who don’t fit the typical founder mold to pursue their visions.
Future Vision
Q14: Embedded finance and Banking-as-a-Service have become significant trends. How does Starling’s Engine initiative fit into your vision for the future of banking?
Anne Boden: Starling Engine represents a natural evolution of our technology strategy. Having built our banking infrastructure from scratch, we realized we could offer this technology to other financial institutions and brands that want to embed financial services. It creates a new revenue stream that leverages our core technology assets.
I believe we’re moving toward a world where banking will be both more visible and invisible simultaneously. More visible through engaging experiences in apps like Starling, but also more embedded and invisible within other products and services people use daily. Starling Engine allows us to participate in both paradigms.
This isn’t just about licensing technology – we’re offering the same systems that power our own bank, continuously improved based on real customer usage. It’s a fundamentally different approach from legacy banking technology vendors. Looking ahead, I expect banking infrastructure to become increasingly modular and API-driven, and Starling is well-positioned to be a leader in this transformation.
Q15: Starling has expanded into mortgages with the acquisition of Fleet Mortgages. How does this fit into your broader strategy, and do you plan to enter other traditional banking segments?
Anne Boden: The Fleet Mortgages acquisition represents our strategy of targeted expansion into adjacent sectors where we can add value. Mortgages are a natural extension of our banking services and provide attractive returns on capital. Rather than building this capability from scratch, acquiring Fleet gave us immediate scale and expertise in the specialist buy-to-let market.
We’ll continue to evaluate opportunities
