Charles McManus, CEO of ClearBank, spoke at the Innovate Finance Global Summit in April 2023. ClearBank, a British financial technology firm powering payments for companies like Coinbase, saw its first full year of profit due to higher interest rates driving a 91% increase in revenues. The firm reported an £18.4 million pre-tax profit for the year ending Dec. 31, 2023, compared to a £7.1 million loss in 2022. ClearBank reached profitability on a monthly basis in November 2022 and reported annual profitability for the first time.
The increase in total income led to a 91% revenue growth to £111.3 million in 2023. ClearBank attributed its success to the rise in deposits resulting from high interest rates. Tide, one of ClearBank’s major customers, offered a 4.33% interest rate to its business customers, driving more deposits. Despite benefiting from higher rates, CEO Charles McManus highlighted that ClearBank’s revenue from transactions was also growing steadily.
One key factor driving ClearBank’s performance was the surge in deposits following the collapse of Silicon Valley Bank. Customers of SVB sought alternatives, leading to increased deposits for ClearBank. Founded in 2015, ClearBank is a regulated clearing bank and payments institution in the U.K., providing banking services to various fintech companies.
McManus mentioned that ClearBank is not in a rush to go public, as the company has a substantial amount of cash on its balance sheet. The firm raised £175 million in a financing round in 2022 and is focusing on expanding into the U.S. market before considering an IPO. ClearBank is also pursuing a European Union banking license through the Dutch central bank, with Brexit posing challenges for the firm in obtaining the license. The decision of the UK to leave the EU has made it difficult for British fintech firms to expand into the EU due to the loss of “passporting” rights.
ClearBank, a British financial technology firm, reported its first full year of profit in 2023, with a pre-tax profit of £18.4 million. The increase in revenue was primarily driven by higher interest rates, resulting in a 91% jump in overall revenue to £111.3 million. The firm attributed its positive performance to various factors, including its clearing business for authorized electronic money firms and growth in bank-to-bank payment services. Higher deposits, resulting from the collapse of Silicon Valley Bank, also contributed to ClearBank’s success. Founded in 2015, ClearBank provides banking services to fintechs like Coinbase and business banking startup Tide. The company is not in a rush for an IPO and is focused on expanding to the U.S. market and obtaining a European Union banking license. Brexit has posed challenges for ClearBank in obtaining the EU banking license.
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