A tech founder in London criticises Starling Bank for its policy towards startups after her company’s account was unexpectedly closed.
- Alicia Navarro, CEO of Flown, expressed that Starling Bank’s actions are unfriendly towards businesses with venture capital shareholders.
- Navarro had banked with Starling for four years and claims her account closure was due to shareholders being corporate entities.
- The founder warns other startups of the policy, highlighting a restrictive approach for VC-backed companies in the UK.
- Starling Bank, a prominent UK bank, is dealing with increased scrutiny over its business practices and customer satisfaction.
A prominent tech founder, Alicia Navarro, has publicly expressed discontent with Starling Bank after her company’s account was abruptly closed. Her frustration stems from what she describes as a ‘worrying’ approach by the bank, which she claims is not conducive for startups with venture capital backing.
Having maintained an account with Starling Bank for four years, Navarro was caught by surprise when informed that her business account could no longer be accommodated due to shareholders being corporate entities. According to Navarro, the bank cited this as a breach of their terms, despite the longstanding relationship and the business’s growth under venture capitalist investment.
Navarro shared her reaction on social media, articulating that the policy could adversely impact many startups in the UK, especially those relying on venture capital. She emphasised the need for these businesses to reconsider their banking arrangements if they were currently with Starling, warning them of a potential unceremonious account closure.
This situation sheds light on broader regulatory pressures faced by banks in the UK, requiring transparency in the declaration of ultimate beneficial ownership. While Starling Bank ranks highly in customer satisfaction, it has not escaped scrutiny, having faced a significant regulatory fine for inadequate financial crime prevention in the past.
As the narrative unfolds, the implications of such policies on the thriving startup ecosystem in the UK remain to be fully understood. However, it underscores a critical conversation around banking practices and their alignment with the needs of emerging businesses.
The situation highlights the ongoing challenges startups face in navigating banking policies in the UK.
