Starling Bank plans to eliminate approximately 130 positions as it streamlines operations and accelerates automation efforts. The London neobank informed staff this week that it is restructuring both banking and technology divisions to remove duplicate roles. This move comes amid declining profitability, with group revenues falling 6% to £887mn and pre-tax profits dropping 3% to £217mn in the year to March.

Several major projects have concluded, prompting the reorganization. Starling's leadership believes the reshuffle will improve product launch speed and internal collaboration. The bank emphasized that agility remains its competitive advantage over traditional lenders, enabling faster testing, learning and adaptation cycles.

Interest income declined from £811mn to £759mn as Bank of England base rates fell, hitting neobanks that rely on deposit interest for revenue. Starling established Engine as a separate division in 2022, licensing its digital banking software to institutions across Canada, Romania, New Zealand and Australia.

The restructuring supports Starling's pivot toward software licensing as an easier path to international growth than building regulated consumer operations abroad. The bank abandoned its 2022 attempt at a European banking licence and is now evaluating a US bank acquisition to showcase Engine's capabilities. With 6.2 million customers and IPO discussions ongoing, Starling needs operational efficiency to justify its valuation ambitions.