Key facts
- Starling Bank's new chief banking officer, Bernadette Smith, is focused on diversifying revenue streams.
- The bank reported a 3% drop in pre-tax profit and a 5.6% decline in revenue in the last year.
- Smith aims to increase fee income, currently at 14% of total revenue, to over 15%.
- New product launches, including working capital solutions and student accounts, are planned.
- Starling has a significant capital surplus of over £525m, allowing for strategic options including acquisitions.
Bernadette Smith, the newly appointed chief banking officer at Starling Bank, is determined to drive profit growth and diversification for the fintech firm. She aims to achieve this by increasing fee income and launching new products and features, aiming to create market momentum.
Smith acknowledged Starling's recent performance, which saw a 3% drop in pre-tax profit to £217m and a 5.6% decrease in revenue due to falling interest rates. She expressed a desire for significant profit improvement, stating, "I don’t want a dip in profit, I want a healthy improvement in profit." She envisions the next year's headline for Starling as one of energetic change and positive consequences.
To achieve this, Smith has initiated a rapid product launch strategy, with at least one new product or feature introduced weekly since she took on the role. This includes offerings like travel e-sims and business expense cards. A key focus is increasing fee income, which currently constitutes just over 14% of Starling's revenue, with a target to push this figure above 15%. Smith emphasized that new fee-based products will be carefully considered to ensure they make strategic sense.
Future product developments include working capital solutions for small businesses and sole traders, and student accounts, which Starling aims to be the first neobank to offer. The bank holds substantial deposits totaling £12.7bn at the end of 2025, with a loan-to-deposit ratio of 41.2%, leaving approximately £7.5bn available for lending. Furthermore, Starling benefits from a capital surplus exceeding £525m as of May 2026, providing significant financial flexibility and optionality, including potential acquisitions.