Launched as a challenger to traditional lenders, it profited from offering state-backed loans during Covid. But then the regulator came calling

In June, Raman Bhatia walked into the fifth-floor office at Starling Bank’s headquarters in east London with a clean slate. It was set to be an antidote to a turbulent two years steering his former employer, Ovo, through an energy crisis and fines for overcharging customers.

At the digital-only challenger bank, where he was taking over from the founder, Anne Boden, things looked more rosy, with a possible stock market listing on the horizon. He began his term by rubbing shoulders with new Labour ministers in No 10’s rose garden, and charming staff during a tour of Starling offices in Cardiff, London and Southampton.