ClearBank readies for Europe launch as it reaches full-year profitability

ClearBank will launch in the EU this year, having reported its first full-year of profitability, driven by an increase in embedded banking end-customers and growth in fees.

The real-time clearing and embedded banking provider reported pre-tax profits of £18.4 million in its 2023 annual report, compared to a loss of £7.1 million in 2022, while total income rose 91% year-on-year to £111.3 million.

Payment volumes also increased, climbing 54% year-on-year to reach a total of 108 million for 2023, in part driven by an acceleration in Open Banking transactions.

Charles McManus, chief executive officer of ClearBank

ClearBank reported growth in embedded banking end-customers, up 93% on the previous year, with 1.2 million customers now holding FSCS-protected accounts through partners such as Chip, Raisin, and Tide.

An increase in embedded banking clients, as well as greater transaction volumes resulted in fee growth, ClearBank’s latest annual report showed.

Total payment scheme volumes, aided by a “sharp rise” in Open Banking-driven account-to-account transactions using the Faster Payment System, rose by 54%.

Against this financial backdrop, ClearBank confirmed that it continues to progress its European banking licence application and global expansion plans, with a view to fully launching in the EU later this year.

Charles McManus, ClearBank’s chief executive officer, called 2023 a “standout year”.

“While the industry and the broader economy have faced significant challenges, our values of innovation and sustainable growth have led to our first full-year of profitability – an incredible milestone in our journey,” he said.

“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.”

Last year, ClearBank began working with UK-based SME lender Allica Bank to provide customer accounts and access to UK payments schemes to Allica’s business customers.

More recently, ClearBank appointed Emma Hagan to the newly-created role of chief executive officer of ClearBank UK.