Starling Bank, the British mobile banking startup, has raised £75m in a new funding round led by Merian Global Investors in a bid to fuel its global expansion.

The investment brings the banks total raised to more than £120m and includes a £15m contribution from Bahamas-based hedge fund manager Harald McPike, a long-term investor in Starling Bank.

Starling, led by former Allied Irish and RBS executive Anne Boden, said that the funding would support its expected launch in Europe this year, as well as further investment in its retail and banking services in the UK.

Ms Boden said: "Our ambition is to use our technology to build a next-generation global, digital banking platform, starting with our launch across Europe this year."