Fintechinvestmentreviews.com reports that in recent years, the public’s confidence in traditional banking has plummeted. Events like the financial crisis of 2008 and the mis-selling PPI have shaken the public’s faith in high street banks like Barclays, Lloyds and Halifax.
Even as the UK taxpayers’ money was being used to bail out some of the UK’s biggest banks, workers in the sector continued to enjoy increasing bonuses and salaries.
The UK’s discontent with this traditional way of banking has led to the fintech sector boom in challenger banks that offer alternatives to traditional banks.
What’s so different about challenger banks?
Challenger banks work much in the same way as traditional banks but are built completely on modern technology, rather than relying on the old way of doing things.
Because these kinds of banks use newer technology, they can provide more transparency than a traditional bank. They can also offer better interest rates, lower fees and better customer service. Like Starling bank, most of these banks don’t even have branches.
In the UK, these banks are growing in popularity as people lose interest and faith in legacy banks. Fintechinvestmentreviews.com reports that these banks are also taking root in North America.
Starling bank seeking further investment
Starling Bank is centred around a mobile app where everything is controlled. The company plans to raise $54 million (£40 million) to take their mobile app global. The bank doesn’t have a single branch and its customers manage their account themselves through the company’s app.
Starling offers numerous advantages to customers. They boast zero fees, even when using an account abroad. They offer overdrafts with low fees that put the user in control of how much they are lending at all times.
Whenever a customer uses their card, the transaction is displayed instantly in an informative and intuitive way. Starling even sends the user a notification when their card is used. This is a vast improvement on mobile banking apps provided by legacy banks like NatWest.
Starling supports ApplePay and AndroidPay, making paying for things much simpler and easier. Users don’t even need to have a card to access their account.
For more information on Starling and other exciting investment news, visit fintechinvestmentreviews.com.