Starling Bank Adds an Income Protection Option

Starling Bank‘s marketplace has been including Anorak since 2018. This FinTech built a robo-advisor for providing customers with advice on the best life-insurance offers based on their profiles and lifestyles.

Their partnership is being expanded: Anorak now enables Starling Bank’s customers to subscribe insurance policies addressing income losses.
Whom for? Freelancers and other self-employed workers.
How it works
- From Starling Bank’s marketplace, customers start a diagnosis process by Anorak.
- Using Starling Bank’s API, the FinTech analyses the transactions they conducted from their bank account.
- Anorak recommends an income protection, defines the relevant amount and term for each customer.
- Anorak then features the contract most suited for each customer and lets them apply from Starling Bank’s mobile app.

“Two thirds (65%) of UK adults have no life insurance or other protection cover”

Source: FCA

This launch should help Starling Bank expand their marketplace for financial services: they bet on an existing partnership to achieve this goal. They also aim for consumer segments more likely to be looking into challenger banks’ offers.
Boosting their API distribution model. On their marketplace, Starling Bank changes a fee for making their APIs available to their partners, providing them with access to customers’ financial information and enabling them to sell additional services.
Anorak relies on a distribution channel which grants them access to already qualified customers.

Anorak is used to this type of partnerships. In the UK, they also teamed up with Yolt, European account aggregation service by ING.
Starling Bank has been trialling different models to further expand their business. Besides their marketplace (opening access to their customers’ data), they have also been crafting a Banking-as-a-Service offer. This white label infrastructure already attracted Raisin and Ditto, for instance.
And Starling Bank just announced they managed to reach one million customers.

Category : Alertes quotidiennes