We’re very flattered that Starling’s story has been featured in two case studies just published by Harvard Business School.  Both cases are to be taught in the coming Spring term.

The first case, entitled “Starling Trust Sciences:  Measuring Trust in Organizations,” is intended for use in classes on entrepreneurship and strategy.  Set in late 2017, the case tracks Starling’s origin, development of our Predictive Behavioral Analytics software tools, and the factors that informed our decision-making as to whether we should devote scarce entrepreneurial resources to targeting opportunities in the “People Analytics” space or in the then emerging field of “RegTech.”

Download here

The second case, “Regtech at HSBC,” reflects Starling’s decision to pursue opportunities in the RegTech space, and is intended for courses that focus on innovation and risk management.  Set in 2019, the case focuses on HSBC’s Global Head of Operational Risk, Mark Cooke.  Non-financial risk management failures had cost HSBC billions in fines and settlements over the previous decade.  In response, HSBC had hired thousands of risk and compliance staff and invested billions in traditional control systems. Cooke was unsure whether these traditional methods were sufficient or sustainable.

A pilot test of Starling’s Predictive Behavioral Analytics solution demonstrated an ability to anticipate risk failures, positioning Cooke and his team to intervene proactively, and do so at a much lower cost than traditional systems. Should HSBC double down on the promise of such RegTech capabilities, or persist in its reliance on past risk management methodologies?

Download here

We look forward to participating in the teaching of relevant courses at HBS, and to learning how students and others react to both cases