UK: Starling Bank to offer personal loans

The app-only Starling Bank is to begin providing unsecured loan products for the first time, with the intention of tailoring the loan products to the financial circumstances of the customer.

Starling Bank customers will be able to borrow up to £5,000, choose the day the repayment is made and the timescale in which repayments are made. There will also be no early repayment penalty for the loan products.

Starling Bank also says that customers will have transparency throughout the whole borrowing process, achieved through customers being able to see the number of remaining payments, when payments are due and the amount of each payment, all through the mobile app.

RFi Group data demonstrates that while only 5% of consumers have an intent to take out a personal loan in the next 12 months, this group are more likely than other consumers to consider a FinTech.

1 in 3 of these consumers is highly likely (8-10) to consider a FinTech provider, compared with only 1 in 5 for a savings account or current account.

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