Starling Bank has recently expanded its IT services reach into New Zealand, marking its fourth country outside of the UK.
As financial services and non-financial businesses seek modern digital platforms to offer their customers, banks are leveraging their IT skills and resources to generate profit.
The UK challenger bank has inked a deal to provide its banking-as-a-service (BaaS) software, Engine, to mutual SBS Bank in New Zealand.
Starling Bank’s tech sales operation, initially launched in the UK in 2018, allows businesses in various sectors to offer retail banking services through its APIs. Rebranded as Engine in 2022, its first BaaS customer was savings fintech Raisin. The bank expanded its tech sales into continental Europe in 2021, and with the recent deal in New Zealand, it now serves an international customer base that includes Canada, Australia, and Romania.
SBS Bank is the first mutual organization to utilize Starling Bank’s BaaS. Mark McLean, CEO of SBS Bank, expressed that the deal will enhance the banking experience for members and enable their staff to maintain exceptional service standards.
In a move to target mid-tier banks in North America, Starling Bank extended its BaaS offering to Canada’s Tangerine in April 2025. The bank also collaborates with Salt Bank in Romania and AMP in Australia.
Founded in 2014 and licensed in 2016, Starling Bank was created by Anne Boden, a banker with an IT background. The bank’s goal is to make banking as convenient as possible using modern technology and enabling customers to leverage the data they generate in their daily lives.
BaaS offerings are becoming increasingly popular, with embedded finance integrating various financial services into non-financial digital products. BaaS platforms have contributed to the growth of this trend, with the global BaaS market projected to reach $74.8 billion by 2030.
Non-banking businesses seeking to provide financial services require regulation and access to costly banking technology. By partnering with banks and fintech companies, these firms can offer financial services to customers through API-driven services regulated by the bank.
NatWest, a traditional UK high street bank, is also venturing into BaaS to meet rising demand. Through its Boxed operation, NatWest provides technology for its digital SME bank, Mettle, while extending the same capabilities to external businesses interested in offering financial services to their customers.
NatWest’s BaaS is already utilized by Saga, the Automobile Association, and three undisclosed large customers. The service, launched in July 2025, sees financial products underwritten by NatWest Bank, with tech and support provided by NatWest Boxed.
