Euromoney Goldex white label to invest in gold for fintechs

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The pandemic has accelerated digital adoption in financial services, as fintechs have experienced extraordinary customer growth in the past 15 months.

Unfortunately, for their funders, however, few are still making a profit.

In a note released this week, titled Digital Neobanks: Customers Grow, Losses Grow, Citi analysts looked at four large UK companies – Monzo, Starling, OakNorth and Revolut – and found that their combined customers grew 45% in 2020. to reach 22 million.

That’s almost as much as national retail champion Lloyds Banking Group, with $ 25 million.

Still, the average revenue per user of the four neobanks was only £ 14 in 2019/2020, compared to £ 370 at Lloyds.

Revolut, to retain the best known, now has 15 million customers, against 10.2 million at the end of 2019. However, even in a year in which it stopped marketing and discretionary spending, Revolut recorded a pre-tax loss on ordinary activities of £ 207.9 million for 2020.

This compares to a loss of £ 107.7million for 2019.

In one policy statement in April, the UK’s Prudential Regulation Authority reminded, for now, non-systemic banks that, when they mature after the initial clearance, they should provide more clarity on the path to profitability.



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