Fees are a near-term survival tactic, but Starling's focus on profitability could make it a long-term contender in banking.
Starling's new fees and the negative interest rate it will charge on large euro deposits are measures to break even on current accounts: They offset the costs of money-losing services, but fee income will be tied linearly to new accounts and will not provide the growth kick that would make Starling profitable.scales lines like unsecured personal and small business loans, it could reduce its losses per account and might ultimately turn profitable.
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