Starling Bank launch additional secondary Current Accounts

[Deleted User]

Zellah said:

Why on earth are Starling charging for a second current account when nearly every other major bank/BS will offer a second account for free? I have a second current account with First Direct and never been charged for it and probably never will. Its comes with its own unique sort code and account number and a separate debit card as well.

If its costing Starling money to provide a second account then I would argue its costing them far more by providing free overseas transactions on their debit card, though of course not many of us will be travelling overseas at present. Weird bank.

Other banks will offer a simple secondary current for free but fans of Starling might be willing to pay to keep it inside the same ecosystem. The free foreign usage is a loss leader and to give them a USP.

wiseonesomeofthetime

I read somewhere that you do not get a second debit card either. Not sure how factual that is yet as not researched due to zero interest in product.

Allegedly, you use the main debit card and switch is in-app to the account you want the funds taken from.

Sounds like a Curve type solution to a problem that should not exist imo.

Tragen

dahj said:
The free foreign usage is a loss leader and to give them a USP.

Which aspect are you talking about?
They make money from transaction made abroad, as they do locally. 
They will be losing money on foreign cash withdrawals though, but then domestic cash withdrawals cost them money too, just not as much.

ryan92

wiseonesomeofthetime said:

I read somewhere that you do not get a second debit card either. Not sure how factual that is yet as not researched due to zero interest in product.

Allegedly, you use the main debit card and switch is in-app to the account you want the funds taken from.

Sounds like a Curve type solution to a problem that should not exist imo.

Yeah you don't get a second card. You select which account you want your card to represent in the Starling app ; so yeah, very similar to how Curve works.

[Deleted User]

Tragen said:

dahj said:
The free foreign usage is a loss leader and to give them a USP.

Which aspect are you talking about?
They make money from transaction made abroad, as they do locally. 
They will be losing money on foreign cash withdrawals though, but then domestic cash withdrawals cost them money too, just not as much.

All Mastercard/ Cirrus ATM transactions will be loss making. 

They will also:

1. be get charged by card scheme when the card holder uses the card outside the EEA.
2. They will take the hit for most overseas card/ ATM fraud.
3. Have increased dispute/chargeback admin costs as it's easier for the card holder to approach the bank than go overseas.

All of which they are providing for free...