Fidelity is reportedly in discussion with Starling Bank about taking a £100 million stake in the digital banking challenger.
Sky News, who first reported the move, said the US-based fund management company is in advanced negotiations to lead £200 million fundraising for the challenger bank.
Starling, which was first launched in 2014, was last year named the first digital challenger bank set to break-even.
Starling's money on account jumped from £900 million in October 2019 to £4 billion in October 2020, and gross lending jumped from £37m to £1.5 billion.
The banking challenger also revealed plans to continue growing its operations and scale across Europe.
The deal has not yet been confirmed and could “be some way off,” according to City Sky sources.
In November, The Times reported that Lloyds Banking Group and JP Morgan Chase had expressed an interest in acquiring Starling outright.
According to Sky, the digital bank's board is understood to have evaluated the banks’ interest and chosen to go for private financing ahead of a potential stock market listing in the coming years.
Starling declined to comment on the deal.
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