Engine by Starling Enters Fourth Global Market With New Zealand’s SBS Bank

WHY THIS MATTERS: This development in New Zealand underscores the accelerating global trend of core banking modernization among established financial institutions. For mutual banks and building societies—often saddled with rigid, decades-old infrastructure—the adoption of agile, cloud-native Software-as-a-Service (SaaS) solutions is no longer optional; it is a critical competitive necessity. The partnership between SBS Bank and Engine, a system proven by one of Europe’s leading digital banks, signifies a significant migration risk being absorbed by a platform provider with genuine operating experience. This move de-risks the transformation process for other traditional lenders worldwide who are balancing heritage and community focus with the urgent need to deliver ‘best-in-class’ digital customer experiences, particularly around fast onboarding and robust fraud protection. This partnership is a powerful proof point for the viability of platform-based transformation in the highly regulated APAC region.

Engine by Starling, the Starling Group’s banking Software-as-a-Service business, today announced a partnership with SBS Bank, a New Zealand-owned mutual, in its fourth international deal.

SBS Bank has grown from building society roots to become an established financial institution in New Zealand, known for championing first-home ownership and its long-standing commitment to investing in local communities. It will now upgrade its core banking system to Engine’s secure cloud-native banking platform so members can experience best in class digital onboarding, advanced fraud protection, and everyday banking features such as card controls and spending insights; all delivered through an intuitive mobile app that’s consistently rated as the UK’s best banking experience.

Behind the scenes, Engine’s platform will provide a simplified, consolidated view of accounts and modern support tools, strengthening resilience and the scalability of core systems to set SBS Bank up for long term growth.

Mark McLean, Group Chief Executive, SBS Bank, said: “Engine was developed by the UK’s leading digital bank, Starling, and will bring world‑class capability to our members, and New Zealand. By partnering with Engine, we’ll combine the best of what SBS Bank offers today with globally acclaimed banking expertise, to create a more modern and secure experience for our members and enable our people to continue to deliver the outstanding service they provide today.”

SBS Bank is Engine’s first mutual client and launch partner in New Zealand, after the UK-headquartered firm launched a new digital bank for AMP in neighbouring Australia, AMP Bank GO. The transformation programme for SBS Bank will be implemented with Deloitte, which brings proven delivery expertise.

Sam Everington, CEO of Engine by Starling, added: “Welcoming SBS Bank as our first mutual client is a powerful proof point for Engine’s adaptability across customer bases and product profiles. We have a tried and tested blueprint for ambitious customer-centric banks looking to deliver brilliant digital experiences. Engine is a proven platform that works for large scale bank transformations, financial institutions unlocking new segments, new digital-first banks and community focused mutuals. This milestone demonstrates that our technology can flex, scale and evolve to meet the needs of many different banking models.”

Engine powers the daily banking of millions of customers globally, supporting banks including Starling in the UK, Salt Bank in Romania and AMP in Australia. Last year it announced its first agreement in North America, with Canada’s Tangerine Bank.

FF NEWS TAKE: This deal decisively moves the needle by proving Engine’s adaptability, securing their first mutual client and cementing their footprint in Oceania. The decision by SBS Bank to leverage a proven Banking-as-a-Service model shows that even community-focused institutions are prioritizing speed-to-market over building proprietary systems. The real test will be the implementation timeline and the seamless migration of members. We should watch closely to see if this success spurs further adoption among the numerous building societies across Australia and New Zealand, confirming a new standard for non-traditional lender digital transformation.