Goldman Sachs, whose Marcus digital banking brand in the U.K. recently reopened savings accounts deposits after a nearly 8-month pause, is investing £50M ($69M) in neobank Starling, barely a month after Starling closed a $381M funding round.

Why should we care?
Goldman’s investment in Starling is noteworthy given enhanced reports of interest among large-bank players (including Barclays, JPMorgan and Lloyds) in buying the 7-year-old neobank. Starling, which is reportedly worth more than $1.5 billion, is an attractive target for investors and potential acquirers given that it is profitable – a distinction few other neobanks share. As Goldman’s Marcus reopens its savings offerings to UK consumers, JPMorgan is also planning a UK debut of a digital-only banking brand. Starling says it will use the funding to expand its services in Europe and potentially embark on a merger or acquisition. “Goldman Sachs will bring valuable insight as we continue with the expansion of lending in the UK, as well as our European expansion and anticipated M&A,” Starling founder and CEO Anne Boden said in a statement. Meanwhile, Goldman managing directorJames Hayward noted that Starling addresses a “deep market opportunity” and that the company has sustainable long-term earnings potential. The transaction is still subject to regulatory approval.