UK's Starling Bank Lands First Mutual Client in New Zealand Push
Starling Bank's software arm has signed New Zealand's SBS Bank as its first mutual institution client, marking another geographic expansion for the UK challenger bank's enterprise technology business as it seeks revenue beyond retail deposits.
SBS Bank, a New Zealand-based mutual, will migrate to Engine by Starling's cloud-native core banking platform to modernize its digital offerings and back-office operations. The deal represents Engine's first client in New Zealand and its first partnership with a mutual—a customer-owned banking model that typically moves slower on technology decisions than venture-backed digital banks.
For CFOs tracking the core banking software market, the deal signals that mutuals—long seen as conservative technology buyers—are now willing to bet on platforms built by neobanks rather than legacy vendors like FIS or Temenos. SBS Bank cited the need for mobile app access, digital onboarding, advanced fraud protection, and customer-facing features like card controls and spending insights as drivers for the switch.
"By partnering with Engine, we'll combine the best of what SBS Bank offers today with globally acclaimed banking expertise, to create a more modern and secure experience for our members," said Mark McLean, SBS Bank's group chief executive, in a statement.
Engine's pitch centers on a consolidated view of accounts and what it calls "modern support tools" for bank staff—a recognition that core banking migrations often fail not on the technology itself but on whether frontline employees can actually use the new system. The platform already powers daily banking for millions of customers globally, including Starling's own UK operations, Salt Bank in Romania, and AMP Bank GO in Australia.
The New Zealand win follows Engine's launch of AMP Bank GO in neighboring Australia and comes months after the firm announced its first North American client, Canada's Tangerine Bank, in 2025. That geographic spread matters for finance leaders evaluating whether Engine can support multi-jurisdiction operations—a key question for any bank considering a core system swap.
"Welcoming SBS Bank as our first mutual client is a powerful proof point for Engine's adaptability across customer bases and product profiles," said Sam Everington, CEO of Engine by Starling. The company is now hiring aggressively to support its pipeline, according to separate reports.
The deal raises a broader question for bank CFOs: whether software businesses spun out of neobanks can scale profitably, or whether they'll face the same unit economics challenges that have plagued their parent companies. Starling itself has been profitable in the UK, but Engine's ability to win mutuals—institutions that typically negotiate hard on price and demand extensive customization—will test whether the SaaS model works outside the venture-backed digital bank world.
Responses (0 )