ClearBank Goes from £7.1M Loss to £18.4M Profit in One Year

ClearBank Goes from £7.1M Loss to £18.4M Profit in One Year

Time Stamp: April 4, 2024 4:10 AM
ClearBank Goes from £7.1M Loss to £18.4M Profit in One Year PlatoBlockchain Data Intelligence. Vertical Search. Ai.

ClearBank, the enabler of real-time clearing and embedded banking for financial institutions, has demonstrated that even in a year marked by uncertainty and challenges for the financial services industry, profitability and growth can be achieved.

In 2023,
the company increased its income 91% to £111.3 million and achieved its first-ever pre-tax profit in the fiscal year 2023 (FY23).

ClearBank’s
combination of fully licensed banking services and financial technology has
allowed the company to grow even in a difficult market. The bank reported a FY23
pre-tax profit of £18.4 million, a significant turnaround from the £7.1 million loss
in 2022.

Among other
important data, gross fee income rose to £31.4 million. The bank’s embedded banking platform has seen significant growth, with end customers increasing 93% year-over-year to reach 1.2 million.

“Our
success in 2023 places us in an excellent position for 2024,” said Mark
Fairless, the CFO at ClearBank. “We have more customers in our pipeline than
ever before, and we expect this to translate into significant growth in our
recurring revenues.” Fairless was hired as the company’s CFO at the beginning of last year, so he has played a major role in achieving the first-ever pre-tax profit in the company’s history.

One of the
key drivers of ClearBank’s growth has been its ability to attract clients
seeking increased protection and better returns in a high-interest environment.
The institution utilizes a model in which funds are held at the Bank of
England, guaranteeing additional security for its clients. Over the year, the
institution increased the value of held deposits to £6.1 billion.

“We have
been able to offer resilience and stability in an uncertain market, building
services our customers need, including a best-in-class embedded banking
offering,” said Charles McManus, the CEO at ClearBank. “But, this is just one
step on the journey, not the finish line.”

ClearBank has partnered with 15 of the country’s newest banks, including Allica Bank and Alba Bank, to enable a competitive and dynamic financial services market in the UK.

ClearBank’s CPO Changes

In April of
the previous year, the company appointed Spiros Theodossiou to Chief Product
Officer (CPO), bringing over two decades of experience from notable companies, such as DEXT, WorldPay, PayPal, Skrill, and Vouchercodes.com.

Six months
later, Megan Cooper, who previously held leadership roles at Barclays UK
Business and Starling Bank, joined ClearBank as the new CPO, bringing with her
a wealth of knowledge and expertise in the fintech industry.

Rather than
parting ways with Theodossiou, ClearBank recognized his valuable contributions
and promoted him to the position of Group Chief Product and Technology Officer.

With a
growing customer base of over 200 clients, ClearBank is now setting its sights
on extending its reach into the European market.

ClearBank, the enabler of real-time clearing and embedded banking for financial institutions, has demonstrated that even in a year marked by uncertainty and challenges for the financial services industry, profitability and growth can be achieved.

In 2023,
the company increased its income 91% to £111.3 million and achieved its first-ever pre-tax profit in the fiscal year 2023 (FY23).

ClearBank’s
combination of fully licensed banking services and financial technology has
allowed the company to grow even in a difficult market. The bank reported a FY23
pre-tax profit of £18.4 million, a significant turnaround from the £7.1 million loss
in 2022.

Among other
important data, gross fee income rose to £31.4 million. The bank’s embedded banking platform has seen significant growth, with end customers increasing 93% year-over-year to reach 1.2 million.

“Our
success in 2023 places us in an excellent position for 2024,” said Mark
Fairless, the CFO at ClearBank. “We have more customers in our pipeline than
ever before, and we expect this to translate into significant growth in our
recurring revenues.” Fairless was hired as the company’s CFO at the beginning of last year, so he has played a major role in achieving the first-ever pre-tax profit in the company’s history.

One of the
key drivers of ClearBank’s growth has been its ability to attract clients
seeking increased protection and better returns in a high-interest environment.
The institution utilizes a model in which funds are held at the Bank of
England, guaranteeing additional security for its clients. Over the year, the
institution increased the value of held deposits to £6.1 billion.

“We have
been able to offer resilience and stability in an uncertain market, building
services our customers need, including a best-in-class embedded banking
offering,” said Charles McManus, the CEO at ClearBank. “But, this is just one
step on the journey, not the finish line.”

ClearBank has partnered with 15 of the country’s newest banks, including Allica Bank and Alba Bank, to enable a competitive and dynamic financial services market in the UK.

ClearBank’s CPO Changes

In April of
the previous year, the company appointed Spiros Theodossiou to Chief Product
Officer (CPO), bringing over two decades of experience from notable companies, such as DEXT, WorldPay, PayPal, Skrill, and Vouchercodes.com.

Six months
later, Megan Cooper, who previously held leadership roles at Barclays UK
Business and Starling Bank, joined ClearBank as the new CPO, bringing with her
a wealth of knowledge and expertise in the fintech industry.

Rather than
parting ways with Theodossiou, ClearBank recognized his valuable contributions
and promoted him to the position of Group Chief Product and Technology Officer.

With a
growing customer base of over 200 clients, ClearBank is now setting its sights
on extending its reach into the European market.

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