ClearBank reaches profitability as revenue climbs to over £45m
By Gloria Methri
Embedded banking provider ClearBank Ltd generated £45.4 million in revenue in YTD to October 2022, reaching monthly profitability for the UK-based bank.
The FinTech nearly tripled its 2022 YTD revenue compared to the same period last year. The growth is being driven by increased transaction volumes, new customer sales, interest income, and the ramp-up of its FX and multicurrency proposition.
ClearBank’s single API cloud-native Embedded Banking platform allows financial institutions and FinTechs to offer regulated financial products and services to their customers without the cost and complexity of building it themselves.
The company has seen success with emerging e-money institutions, FinTechs, mid-market players, and mature financial service providers.
“In the last few years, we have seen the market shift from agency banking services to BaaS and now Embedded Banking driven by the demand from institutions and increasingly brands to integrate sophisticated and regulated financial services into their customer offerings,” said Charles McManus, CEO at ClearBank.
McManus is confident that today’s environment is uniquely primed for the company’s breadth of offer. He said, “With a licensed clearing and Embedded Banking platform that is scaling rapidly, we expect to build on the success of 2021, and our accomplishments thus far in 2022, ahead of expansion into Europe in 2023 and the US soon after. The market is coming to ClearBank.”
In March 2022, ClearBank announced £175 million strategic investment led by Apax Digital, the growth equity arm of Apax Partners LLP. The company’s existing investors CFFI UK Ventures (Barbados) Ltd and PPF Financial Holdings BV also participated in the round. This growth and expansion, coupled with a healthy client pipeline and an expanding deposit base, has accelerated the firm’s profitability in 2022.
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