Euromoney Goldex white label to invest in gold for fintechs
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.