Starling Bank is aiming to provide affordable currency transfers to 35 countries by using a TransferWise API.
The digitally native, mobile challenger bank Starling was recently granted its UK banking license from the Prudential Regulatory Authority and the Financial Conduct Authority (FCA), and is now ready for launch.
Starling is set to use money transfer services provided by British fintech firm TransferWise. The companies have said that the service will involve an upfront fee, and will be using the real exchange rate.
The service that Starling Bank intends to offer will work by providing customers with tools for money management, while also granting spending visibility and categorising payments.
As reported by the Financial Times, Scott Miller, head of partnerships at TransferWise said: “The partnership is [a] powerful example of how the TransferWise API can be used to integrate TransferWise into any UK or EU bank and business payment system.”
“Starling Bank accesses the same API that TransferWise’s business customers use to make thousands of monthly international and domestic payments.”
Through methods such as this, fintech start-ups and challenger banks are applying mounting pressure to traditional banks struggling to match the convenient, forward thinking options of their new rivals.
The ideas and game plans of these new banks are drawing in a great deal of interest, as another new challenger bank Monzo recently raked in an impressive round of funding. After accumulating in the region of £20m, Monzo is poised to initiate its full launch this year. Monzo already has over 100,000 users, this early success is representative of the possible next stages for Starling Bank.