FinecoBank’s UK growth proof of changing customer behaviour

By Sunniva Kolostyak

European FinTech bank FinecoBank has seen its UK current accounts on trading triple over the past year, proving that the pandemic is resulting in long-term change in customer behaviour.

Reporting on its Q3 results, FinecoBank saw record volumes from its UK client base following a successful H1. It had a 55 per cent increase from March to September 2020 compared to the same period in 2019, with active current accounts on trading more than tripling on a yearly basis.

Overall, Fineco has recorded a net profit of €246 million in the first nine months of the year, equalling a 23 per cent year-on-year growth three years after entering the UK market.

In a statement, Paolo Di Grazia, Vice General Manager of FinecoBank commented: “Today’s results validate some key assumptions we made about today’s customer when we decided to enter the United Kingdom: people want an integrated provider that offer many services through one streamlined portal, and that the primary way those services will be delivered will be digitally.

“The current climate confirmed and accelerated these trends, and we fully expect this to be the default model in the near future. We will remain focused on developing and growing our base of quality clients who use Fineco who frequently use the company’s services.”

The bank saw revenue increases across all its products – a €178 million or 84 per cent year-on-year growth for brokerage, a 6 per cent growth for investing and a 3 per cent growth for its banking services. It also boasts a Cet1 (Tier 1 Capital) Ratio of 23.28 per cent.

FinecoBank, which specialises in combining brokerage, banking and investment services, has also launched webinar and education training programmes due to the turbulent market backdrop, offering traders live analysis of markets and review of open trades.

Earlier this year, it extended its investment funds to UK customers. Through Fineco, clients can access investment strategies from JP Morgan, Capital Group, Fidelity Investments, Aberdeen Investments, M&G Investments, Algebris and Columbia Threadneedle Investments.

Fineco plans to continue to expand its offering for UK customers and intends to roll-out additional features and services during the next months, enlarging its fund offering, with ISAs and saving products in 2021.