Starling Bank is among the many challenger banks that have propped up in the UK in the last decade. It’s one of the few challenger banks with complete FSCS protection and an impressive feature set that allows customers to open accounts using their phones instantly.
After approval, customers can access various features, including money management tools, 24/7 customer support, competitive interest rates and overdraft facilities. But as many customers have come to find out, getting a Starling Bank account is easier said than done.
Although challenger banks have challenged the status quo in banking and the financial sector, they have maintained some tendencies, like declining accounts and transactions, without proper reasons.
Many customers have tried opening a Starling Bank account (current and business) only for them to be turned away.
Reasons Why Your Starling Account Could Be Rejected?
Like traditional banks, most online banks won’t tell you why they’ve rejected your application. Starling Bank often gives a reason, but it is vague and unhelpful. Business accounts are subjected to the most scrutiny and more commonly rejected. But current accounts aren’t immune, either.
Your Starling Bank account could be rejected for several reasons. Some of them are;
Holding foreign documents
Starling Bank is strict about offering its financial services to UK citizens only. Having foreign identity documents, ownership or directorship is seen as an immovable red flag by the bank, ultimately leading to your account being terminated.
This practice is prevalent in online banks because foreign citizenship is considered high-risk and, therefore, avoided.
Complex business structure
Challenger banks are the most accommodating to new and complicated business structures, and Starling Bank isn’t any different. Like high-street banks, they prefer to stick to the status quo and find it challenging to understand businesses that operate in linear terms.
If the actual ownership of the business is hidden behind layers of corporate officers and holding companies, there’s a high chance your account request will be declined.
Companies with an international presence have more difficulty getting approved for online business accounts, especially if they have a presence in “high-risk” countries. These companies often have more requirements and larger sums of money in multiple currencies, which can be blocked or delayed without reason if the company is lucky enough to get the account.
Poor credit background
Online banks may not admit it, but they run credit and security checks before approving accounts. Having a poor credit score or having declared bankruptcy in the past could be some of the reasons your account might be declined. A quick check online shows several instances where this could have been the problem with people trying to open a Starling Bank account.
What to Do After Your Starling Account is Rejected
There is very little you can do after your Starling account is rejected. The bank doesn’t allow you to open multiple accounts, and even if you could, you would have different documentation, and your account would be eventually closed.
There is the option of launching a complaint through customer support. For most people, it is an exercise in futility as their complaints are rarely responded to, and when they are, the support team provides you with the same feedback you got when your account was rejected.
Open an Account with an Alternate Online Bank
Online banks largely follow the same blueprint but can make exemptions in different areas. Some have more stringent regulations than others, making getting accounts in those accounts harder.
If you can’t get your account approved on Starling Bank, there are tens of other online banks you can consider that are just as good as Starling or even better.
One such option is Pay iO. Pay iO is a leading challenger bank offering individuals and businesses multiple payment and finance solutions.
The bank is highly rated among its customers with exceptional features that revolutionise how you bank, make and receive payments. Relying on cutting-edge technology, Pay iO has positioned itself as a market leader in offering alternative banking solutions to individuals, businesses and merchants.
Here are several reasons you should consider opening an account on Pay iO;
Fast and efficient payments
The Pay iO platform is perfect for managing and completing digital payments where most modern transactions occur. With Pay iO, you can easily manage your daily transactions and financial operations with your own business account.
You don’t need to visit the bank or be stuck in queues. The bank can complete various incoming and outgoing payments through different platforms like Faster Payments, BACS, Direct Debit, and SEPA payments, with all EU banks supporting SEPA transfers.
The payments are made directly from your online banking or mobile banking app without entering card details or signing up for e-wallets or apps. You can also integrate Pay iO at checkout so businesses can request the payments directly on their websites.
The world has become a global village. You can send money to friends and family overseas, source products worldwide, and pay suppliers without leaving your comfy office chair. There’s only one kink in the otherwise swift and effortless process – foreign exchange. Forex rates can be expensive, increasing your profit margins and running costs.
Pay iO offers a multi-currency account with a global network that allows you to receive money in multiple currencies. If you don’t have the correct currency, you can always bet on the bank to offer you the real mid-market rate and just one low fee to exchange currencies.
Safety and Security
It goes without saying that security is a huge factor among online banks. Their ability to design and roll out leading security features is one of the reasons they’ve become the trusted financial institutions they are today.
Pay it isn’t any different. With modern features like 2-step factor authentication and end-to-end encryption, the bank ensures all financial data and transactions are safe.
If you’re having trouble setting up an account on Starling Bank, it’s possible you might have better luck with other online banks like Pay iO, especially if the problem is not in your documentation. Some online banks have invested more in understanding newer business models, giving business owners and individuals better chances of getting their accounts approved.