UK fintech Clearbank bolsters fee income amidst European expansion
London-based fintech Clearbank announced full-year results for the first time at group level following the business’ expansion across Europe.
The firm, which is an enabler of real-time clearing and embedded banking, reported a 63 per cent increase to £53.3m in its fee-based income.
Total deposits managed by the fintech reached £10.8bn – up 77 per cent from 2023.
Despite this, Clearbank recorded a group pre-tax loss of £4.4m on an adjusted basis.
The fintech said this was driven by costs relating to its European expansion and the implementation of its new group structure.
However, its UK business maintained profitability for the second year running, booking a £9.9m pre-tax profit.
Clearbank’s chief executive Mark Fairless told Morning Wire: “We’re really pleased with our 2024 performance.”
Fairless added the growth in fee income outpacing interest income was an “intentional” strategy.
He noted the “changing by the day” macroeconomic climate and declining interest rates had led the firm to position itself “accordingly and focus on more sustainable fee income growth.”
With Clearbank having now entered 11 European markets and receiving its European banking license in July, Fairless said growing the European bank was the “focus at the moment”.
“Once we’re more progressed with that, we’re turning our attention to the US, which would be the next leg of the strategy,” he added.
‘All options are on the table’ for IPO
Whilst rapid growth is driving the fintech, Fairless said: “We’re not focused on necessarily a unicorn crown.”
The company boss said building the sustainability of the business and a supportive infrastructure remained the top priority.
Asked whether an IPO could be in Clearbank’s future, Fairless said: “All options are on the table.”
The fintech boss said they couldn’t commit to a specific listing and would “take the call closer to the time”.
“So obviously, the vast majority of our presence is in the UK at the moment, that will balance out to Europe and then we’ll enter the US market.
“And then I think we’d look at what option would fit us best.”
Fairless did praise the booming fintech climate across the Square Mile.
“There’s clearly a competitive market in the UK for that and I think its recognised as a differentiator in the UK.
“What’s important is that we are supported in that kind of growth and in that sector and I think there’s lots of conversations going on on that front.”
He added: “What’s great about Clearbank is that we sit at the centre of that – a large number of the leading fintechs are our customers, and we’re the banking platform that supports them.”