UK-based digital bank Starling Bank is considering a US Initial Public Offering (IPO) as it expands its operations in the United States.

The fintech company believes it could achieve a higher valuation by listing on the New York stock market, similar to what has been observed with other financial technology companies globally. However, Starling Bank has not made any definitive decisions about a potential IPO and is not rushing into the process.

US vs UK IPO

For Starling Bank, pursuing an IPO in New York represents a shift from its previous commitment to list domestically on the London Stock Exchange. In 2024, it had planned for a London-based IPO but is now considering options in the US.

A potential U.S. listing might offer better valuation prospects, yet Starling Bank prioritizes expanding its presence in the United States before making such a move. Bloomberg reported that Starling was interested in acquiring a bank within the country to bolster its operations there.

Starling Bank’s market value stood at £2.5 billion in 2022. Following Jupiter’s sale of its shares, the valuation dropped to £1.5 billion in 2023. This further move away from a domestic IPO could have negative implications for the London Stock Exchange, which has seen fewer listings in recent years.

Other financial institutions like Wise and Revolut are also favoring New York over London as they aim to increase their presence in the region. Monzo is part of this trend too.

Starling Bank remains cautious about listing in the U.S. for a higher valuation unless it can first establish a strong US business. The bank wants to ensure its brand grows sufficiently before making such a strategic decision, ensuring the IPO aligns with long-term goals and growth strategies.

In May, Starling reported that its pre-tax profit fell by more than a quarter to £223 million over the 12 months ending March, as it prepared for potential compliance issues related to government-backed loans during the coronavirus pandemic.