London fintech bank announces 144 per cent growth ahead of US expansion plans
ClearBank Ltd, a London based enabler of bank accounts, real-time clearing, and embedded banking for financial institutions, today presents its unaudited H1 2023 results.
The bank saw a 144 per cent YoY increase in revenues from £20.2m in H1 2022 to £49.3m in H1 2023. Over the same period, customer deposits grew 80 per cent from £3bn to £5.4bn across nearly one million accounts, and payment volumes grew by 39 per cent as the number of clients surpassed 200 institutions.
The first quarter of 2023 saw a series of systemic events, including the failure of SVB leading to a rippling effect of challenges across the US and European financial services markets. This has resulted in a flight to established and secure yet innovative banking partners.
Against this backdrop, ClearBank’s unique combination of fully licensed banking services, next generation technology platform, and embedded banking proposition ensured another period of accelerated growth with significant momentum across all lines of the business.
In particular, institutions are seeking to increase protection of deposits and provide better returns for their customers than those offered so far by mainstream banks, which have been slow to pass on interest rate rises.
ClearBank is working with clients such as Chip and Raisin UK to offer ‘market-leading’ savings rates to help consumers make their money work harder in a high inflation environment. Client funds are held at the Bank of England for maximum security of deposits and peace of mind for customers.
These client propositions have driven an increase in the number of embedded banking end-customers to 979,000 (+125 per cent YoY increase) in H1, with 99 per cent of these accounts FSCS protected (979,000 vs. 988,000).
Following sustained monthly profitability since November 2022, ClearBank posted a £5.9m profit before tax in H1 2023. The fintech bank is on track to achieve annual profitability later this year, with international expansion approaching, as ClearBank continues to progress its European banking licence application.
Charles McManus, CEO, ClearBank, commented: “Following an exceptional year for ClearBank in 2022, the first half of 2023 has been extraordinary with accelerated growth across all lines of business.
“As institutions take flight to quality by seeking scale, security, and safety in their banking partner, we’ve seen significant increases in customer deposits and payments volumes, especially around our embedded banking and open banking propositions.
Now customers are demanding more from us, especially the ability to transact in GBP, USD and EUR, which is driving our upcoming expansion to Europe, followed by the US.“
By Matthew Neville – Senior Correspondent, Bdaily
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