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 Achieves Profitability Milestone, Posts Pre-Tax Profit of £18.4M
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.”
We experienced remarkable growth in 2023, breaking several records and achieving a full year of profitability. 🚀
— ClearBank (@clear_bank) April 4, 2024
Today, we're proud to release our Annual Report and Accounts, which showcases our progress from last year. Thank you to our team, clients and partners for being part… pic.twitter.com/B8qK4a734I
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.
