In an interview with Sifted this week, Boden said the UK challenger was actively searching “for lending businesses to buy”. This includes peer-to-peer (P2P) lenders, as well as small business lenders.
Starling’s deposit base passed £3 billion back in July 2020, up from £600 million in July 2019…
Last year, Starling deployed millions into consumer loans via alternative lender Zopa, and similarly millions into small business loans via Funding Circle.
“Because we have a European strategy, we’re also keen on looking for lending businesses to buy” … Boden highlights the state of P2P lending in Europe, which she believes is traditionally funded by retail investors. But the current trend shows that P2P lenders’ reserves have largely been replaced by institutional backing, which is far more expensive.