Starling Bank has come under scrutiny after awarding £24.6 million in bonuses for the 2024-25 financial year, nearly five times the previous year’s total, despite facing a £29 million fine from the Financial Conduct Authority (FCA) and a £28 million loss on government-backed Covid loans.
The FCA’s investigation revealed that Starling’s financial crime controls were “shockingly lax,” allowing the bank to open over 54,000 accounts for high-risk customers without proper checks, potentially breaching financial sanctions. Additionally, the bank’s Covid-era bounce-back loans were found to have been issued without adequate verification, leading to significant losses.
Despite these setbacks, Starling defended the bonus payouts, attributing them to staff performance over the past year. CEO Raman Bhatia indicated that the bank might consider remuneration clawbacks in response to the regulatory issues.
The controversy has raised questions about executive accountability and the balance between rewarding staff and addressing regulatory compliance failures.
