Digital bank Starling 'pulls plan to enter Irish market'  

CEO Anne Boden told staff that an Irish subsidiary would not deliver the added value Starling is seeking, Sky News is reporting

Starling's decision to shelve its plan will disappoint consumer and business advocates concerned at shrinking competition given the exit of Ulster and KBC from the Irish market. 

A British digital bank has reportedly pulled plans to enter the banking market in the Republic because it could make better returns elsewhere.

Starling Bank has told its 2,000 employees it has pulled  its application it started in 2018 to enter the market in the Republic, Sky News reported. 

Sky News said Starling founder and chief executive Anne Boden said in a memo to staff that "ultimately, we felt that an Irish subsidiary would not deliver the added value we are seeking".

The news will disappoint many consumer and business advocates and brokers in Ireland who have long warned about the implications for competition and the cost of borrowing following the plans by Ulster Bank, the third largest general lender, and KBC Bank Ireland to pull out of their operations in the Republic. 

NatWest-owned Ulster and KBC Ireland, which is owned by its large Belgian parent  which also has operations across the continent, said in the past that they could generate better returns by employing their capital in other markets. 

Following in-depth investigations, the Competition and Consumer Protection Commission (CCPC) has already ruled on the plans by AIB and Bank of Ireland to secure loan books from Ulster and KBC, respectively. It has still to rule on the separate plan of Permanent TSB to acquire loans and some branches from Ulster Bank.

Sky News said that Starling has three million customers, of which 500,000 accounts involve small firms. Sources at Starling said it may now seek to buy a Europe-wide banking license, Sky News reported.