The news: Starling Bank is closing in on US small-business banking—rather than its anticipated retail launch. This signals how crowded the market has become for large neobanks. It’s also notable that a challenger is avoiding the consumer banking market, which was crowded even before recent expansion plans from large foreign neobanks.

Zoom out: Since at least July 2025, Starling has been considering acquiring a US nationally chartered bank and explored a stock market listing in the US. It also introduced its software as a service platform, Engine, to North American markets. Last November, it signed a deal with the Canadian direct bank Tangerine and is now prospecting for US clients. Meanwhile, it has aggressively expanded in its home market, including updates to its experience: It just launched an AI assistant for UK customers, built on Google’s Gemini.

Trendspotting: Potential new entrants have flooded the Office of the Comptroller of the Currency with applications for national bank charters. This move to compete directly with commercial banks primarily targets consumers and small businesses via a full suite of banking products. The US has its own fintech incumbents that offer banking services as well as big banks that keep growing. However, direct fintech competitors have focused on consumer banking, and few have shown interest in a bank charter. Even so, Varo burned nearly $100 million on a charter but has little to show for it.

Implications for banks: There are weak signals that a small-business banking push world work: Over 80% of respondents to a Deloitte survey would consider a digital-only banking provider. But it takes a lot to pry them away: 31% said a better technology platform or digital experience would be a top reason to switch providers in the next year. But that doesn’t mean they would definitely switch. The threat is silent switching—choosing banking-adjacent services at a bank like Starling, and as a result choosing new products away from their primary business bank.

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