The software-as-a-service business of UK challenger bank Starling Bank has secured its biggest client deal to date, providing the cloud banking platform for the digital subsidiary of one of Canada’s biggest banks.
Engine has signed a 10-year deal with Tangerine Bank, a subsidiary digital bank of Canada's Scotiabank, to upgrade its core digital banking system to Engine’s cloud-native banking platform, marking Engine’s first major client win in North America.
Engine says the upgrade will mean reduced operational costs and complexity for Tangerine’s employees, while Tangerine’s over two million customers will also see a smoother experience, it said.
The snapping up of Tangerine Bank comes as Starling and its subsidiary Engine look to establish a foothold in the North American market.
Earlier this year, Starling announced it was opening offices in New York and Toronto and Starling was also said to be weighing up the US as a possible IPO market.
Starling launched Engine as a subsidiary business in 2022, as the challenger bank U-tuned on its global strategy.
It axed plans to grow Starling across Europe through a European banking licence, instead opting to provide its tech on a SaaS basis to banking partners.
Engine sells itself as a “cloud-native, complete banking platform”. Clients can leverage its software to build and enhance services such as digital onboarding and savings accounts.
Engine’s other clients include Salt Bank in Romania and Australia's AMP mobile-first bank. UK-headquartered Engine, which employs around 300 people, is also looking to recruit around 100 staff.
Terri-Lee Weeks, president and CEO of Tangerine, said: “Tangerine chose Engine to help build the future of banking services for our clients – delivering a premier banking experience with intuitive, personalised features that evolve with client needs.
"Engine’s modern core banking system uniquely provides an end-to-end platform on which Tangerine can innovate quickly and continuously, reducing the time-to-market for new products and features, and delivering world-class experiences for our clients – all while staying true to the client-first design that Tangerine is known for in Canada.”
Sam Everington, CEO of Engine by Starling, added: “Engine’s technology and operating model is a tried and tested blueprint for building market-leading digitally-native banks. It is a true fintech success story as we see our software enabling ambitious, innovative and customer-centric banks all over the world.”
Photo: Engine
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