Embedded banking provider Clearbank has reached profitability after tripling 2022 year-to-date revenues compared to the same period last year.
ClearBank secured £45.4m revenue in YTD to October 2022, reaching monthly profitability for the UK-based bank. Growth has been driven primarily by growing transaction volumes, new customers, interest income, and the ramp-up of the bank’s new FX and multicurrency proposition.
ClearBank now supports over 200 financial institutions, including Chip, Raisin, and Recognise Bank, accommodating 17.5m bank accounts and £3bn in balances.
While other fintechs scale back their operations in the face of challenging market conditions, ClearBank anticipates continued and sustainable growth, laying out plans to expand to Europe and the US, beginning with the launch of ClearBank Europe in The Netherlands in 2023.
CEO Charles McManus says: “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."
To support the expansion of its clients overseas, ClearBank recently launched an international proposition which includes multicurrency accounts and payments in 11 currencies and 65 FX currency pairs. It now also offers a Faster Payments Originating Overseas product to enable its partners to use Faster Payments to process GBP payments that have originated outside of the UK.
“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,” says McManus. “As the macro-economic environment continues to be turbulent, there is a renewed focus on the security, resilience and utility offered by fully licensed banking products that unlock the potential of businesses and their customers while ensuring peace of mind.”
In March 2022, ClearBank announced a £175m strategic investment led by funds advised by Apax Digital. ClearBank’s existing investors CFFI UK Ventures (Barbados) Ltd and PPF Financial Holdings BV also participated in the round.