Tech-enabled clearing bank ClearBank has reached profitability in the UK after generating revenues of £45.4 million so far this year.
The London-headquartered enabler of secure accounts, real-time clearing and embedded banking for financial institutions has nearly tripled its 2022 YTD revenue compared to the same period last year.
FY2021 was the second consecutive year that ClearBank’s revenue grew by over 100%, driven primarily by growing transaction volumes, new customers, interest income and the ramp-up of the bank’s new FX and multi-currency proposition.
ClearBank now supports over 200 financial institutions including Chip, Raisin and Recognise Bank. It powers 17.5m bank accounts and £3 billion held in balances.
The firm has also launched its international proposition, which includes multi-currency accounts and international 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.
Its plans to expand to Europe and the US will begin with the launch of ClearBank Europe in the Netherlands in 2023.
“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.
“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, the growth equity arm of Apax Partners LLP, a leading global private equity advisory firm, to accelerate international growth and expand its range of product and services.
McManus added: “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.”