Starling founder exits at £1.7bn value

What happened

Anne Boden, who founded the UK digital bank Starling in 2014, has sold her remaining shares at a valuation of about £1.7 billion, Sky News reported on 20 October. City AM said the holding was 2.7% of the bank, and quoted a Starling spokesperson as saying she sold "privately to several existing shareholders" with the company's knowledge. The deal made "anne boden starling stake sale" one of the UK's trending Google searches on 21 October, on the same day as "bank of england base rate".

A cut-price valuation

The price is well below the roughly £4 billion valuation Starling sought in a secondary share sale last year, according to City AM. Earlier this year, the paper reported, Boden had already cut her stake from 4.3% to 2.7%. She stepped down as chief executive in May 2023; reports at the time linked her exit to a clash with investors over a stake sale by fund manager Jupiter at a below-valuation price. City AM added that she has started hiring software engineers with banking technology experience for a new AI project called "Moonshot".

Background: what lower rates did to Starling

Starling's most recent annual results, for the year to 31 March 2026, show why interest rates matter so much to digital banks. Profit before tax fell to £217.1 million from £223.4 million, and group revenue fell to £887.4 million from £940.0 million, the bank said in May. It pointed to a "softening interest rate environment" and regulatory restrictions that limited UK customer growth. City AM reported that interest income fell by £52.5 million to £759.2 million as Bank of England base rate cuts fed through. Starling still grew to 6.2 million accounts and £12.7 billion of customer deposits, and its software arm, Engine, grew revenue by 25% as its client base doubled.

The base rate picture now

The outlook has changed since then. MoneySavingExpert reported on 20 October that the Bank of England base rate stands at 3.75% after a sixth hold in a row in September, with the next decision due on Thursday, 5 November. Brokers quoted by the site said the Iran war and higher energy prices have pushed UK inflation back above 3%, and that markets expect the base rate to reach around 4.75% by the middle of next year. Mortgage rates have already climbed in response.

Why it matters for payments

Starling's figures show how much of a digital bank's income can come from customer balances: interest income was £759.2 million of £887.4 million in revenue, so rate moves shape the business as much as app features do. For people, the practical questions are simpler: what a digital bank account costs, how money moves between countries, and what exchange rate and fee apply on the day. For anyone who sends money across borders, the cost of a single transfer is worth checking before every payment.

What to watch next

Watch the Bank of England decision on 5 November and its guidance on further moves. For Starling, the questions are whether a future share sale or listing would be priced closer to £1.7 billion or £4 billion, and how fast Engine can grow fee-based income that depends less on interest rates.

What it means for Odix Pay users

Odix Pay is a payment app and does not offer mortgages or investment advice. If clients or family abroad pay you, a virtual IBAN in your own name lets you receive those payments in one place. If you send money abroad, our money transfer app lets you send money to bank accounts in other countries, with the fee and exchange rate shown before you confirm. Availability depends on your country, and fees are shown in the app. More stories are in the Odix Pay newsroom.