AMP teams up with Starling to launch new digital bank for SMBs

By Gloria Mathias

Australia’s AMP Limited is set to launch a new digital bank, built specifically for the transaction needs of sole traders and small businesses. The solution will be built in FY24 and launch in Q1 2025, operating on a separate technology platform, as a new division of AMP Bank.

AMP is working with Engine, the SaaS subsidiary of Starling Bank, a UK digital bank. AMP will leverage Starling’s ‘Engine’ technology platform in building the new digital bank offer, under a Software as a Service agreement.

Targeting sole traders and small businesses with 1-20 employees, the new digital bank division will offer transaction and savings accounts. It will provide tailored functionality and features to help small business owners manage their finances ‘on-the-go’ from their mobile phones.

The new digital bank division requires an investment of approximately $60 million across FY24 and FY25, which will be absorbed within current controllable cost targets and of which approximately $40 million will be capitalised.

Alexis George, AMP Chief Executive said, “This new offer builds on AMP Bank’s strengths and addresses an under-served and growing segment of the market. Importantly, it will reshape the bank portfolio in the medium term to better position AMP for the headwinds the industry is facing when it comes to bank funding.”

“By partnering with one of the most innovative and fastest growing digital banks we will be able to better serve Australia’s growing number of small businesses, and individuals, with their banking needs,” added George.

Sam Everington, CEO of Engine by Starling shared, “Starling Bank has proven in the UK that it’s possible to deliver a resilient and powerful digital banking platform that is valued by customers, as well as being highly scalable and operationally efficient. There are clear parallels between the banking markets in Australia and the UK, and we look forward to leveraging Engine’s expertise and technology for AMP customers.”

Sean O’Malley, Group Executive, AMP Bank said, “Working with Engine enables us to equip small businesses with the best digital tools to help them manage their finances efficiently and conveniently on their mobile phone whilst on the go.”