Engine by Starling Signs NZ Mutual SBS Bank to Power Digital Banking Transformation

Engine by Starling — the banking-as-a-service (BaaS) platform spun out of Starling Bank — has signed SBS Bank, one of New Zealand’s largest mutual financial institutions, to adopt its core digital banking infrastructure. The partnership enables SBS Bank to accelerate its digital roadmap by leveraging Engine’s modern, cloud-native platform to deliver next-generation retail and business banking services to its members. The deal marks one of the first major BaaS engagements for Engine beyond Europe and underlines the growing global appeal of composable, API-driven banking infrastructure.

Under the agreement, SBS Bank will integrate Engine’s modular services — including account management, payments processing, regulatory reporting support and real-time customer experiences — allowing it to modernise legacy systems, speed product innovation and enhance digital engagement. The move aligns with a broader trend in which mutual banks and regional lenders seek agile, scalable core platforms to remain competitive with larger incumbents and digital challengers while maintaining member-centric values.

Key Highlights

• Strategic partnership: Engine by Starling signs NZ’s SBS Bank to adopt its digital banking platform.
• Global expansion: Marks a key international engagement for Engine outside the UK/EU.
• Modern core: SBS Bank will use Engine’s cloud-native, API-first infrastructure to launch new services.
• Member focus: Enhances digital delivery while preserving mutual member values.
• Product acceleration: Faster rollout of retail and business banking features.
• Trend alignment: Reflects mutual banks’ move toward agile, future-ready core systems.

What Engine by Starling Offers

1. Cloud-Native Core Banking

Engine delivers a modern core banking platform built for scale and flexibility, enabling partner banks to:

• Manage deposit accounts and ledgers
• Orchestrate payments and real-time transactions
• Support regulatory and compliance workflows
• Integrate with digital channels and third-party services via APIs

This composable architecture contrasts with traditional monolithic cores that are costly to maintain and slow to update.

2. API-First Digital Integrations

Engine’s platform is designed to integrate seamlessly with digital channels — mobile apps, web portals and partner ecosystems — giving SBS Bank the tools to innovate:

• Real-time account updates
• Smart notifications and alerts
• Digital onboarding and AML/KYC workflows
• Embedded financial services via partners

This allows SBS Bank to enhance member experiences while maintaining control over product definitions.

3. Accelerated Innovation and Delivery

By adopting Engine’s services, SBS Bank can reduce product development cycles, leverage pre-built components and focus internal resources on strategic initiatives rather than core maintenance. This translates into faster time-to-market for new features and agility in responding to customer expectations.

Why This Matters

1. Mutual Banks Modernising for the Digital Era

Mutual banks like SBS — owned by their members rather than shareholders — have historically been slower to overhaul core systems due to resource constraints and legacy technology dependencies. Engine’s architecture enables these institutions to leapfrog outdated infrastructure and compete with larger banks and digital challengers in digital delivery and service velocity.

2. Global Expansion for BaaS Platforms

Engine by Starling’s engagement with SBS Bank signals the global appetite for banking-as-a-service solutions that offer flexible, API-driven, cloud-native core capabilities — especially from fintechs with proven track records. This engagement strengthens Engine’s presence in the Asia-Pacific region and positions it as a viable alternative to legacy core providers.

3. Member Experience and Competitive Differentiation

By modernising its core with a platform built for digital channels, SBS Bank can deliver smoother, faster member experiences — a key differentiator in markets where digital banking adoption continues to grow across demographics and business segments.

Market and Competitive Context

Traditional core banking vendors have dominated the market for decades, but many banks — especially regional, mutual and challenger institutions — are shifting to cloud-native, API-first platforms that offer speed, interoperability and scalability. Competitors in this space include Mambu, Thought Machine, 10x Future Technologies and other fintech-centric core platforms, but Engine’s pedigree — rooted in the success of Starling Bank’s product stack — offers a compelling story for institutions seeking real-world, proven technologies.

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