Tangerine Partners with Starling Group for Digital Banking Services

Tangerine has signed a ten-year agreement with Starling Group to upgrade its core software, becoming the first North American client for the British bank's software services unit, Engine by Starling. According to the Globe and Mail, this partnership will enable Tangerine, a Canadian digital bank owned by Bank of Nova Scotia, to migrate its digital banking operations to Engine's cloud-based software-as-a-service platform.

This deal is the largest yet for Engine by Starling, which has recently expanded into North America with new offices in Toronto and New York. Sources indicate that Engine has previously provided services to banks in Europe and Australia, including Salt Bank in Romania and AMP Bank GO in Australia.

With this new partnership, Engine plans to hire over 100 staff to support its operations in North America. Starling Bank has experienced significant growth, increasing its customer base from 43 thousand in 2017 to 4.6 million in 2025, as it diversifies its revenue streams by offering software services to other banks globally.

However, the bank has faced challenges, including a fine of 29 million dollars imposed by the UK's financial watchdog for inadequate financial crime controls, which Starling claims to have addressed by investing in its governance.

Tangerine, originally founded as ING Direct in 1997 and rebranded after being acquired by Scotiabank in 2012, currently boasts over 2 million clients. This partnership highlights ongoing trends in the banking sector, particularly the shift towards digital banking and the importance of technology partnerships in enhancing service offerings.