Marcel van Oost’s Post

The State of The Top 50 #UK 🇬🇧 private #FinTechs The Key Takeaways from the latest annual reports: With the majority of 2023 FinTech Annual Reports now published, Davide Sangiovanni released his yearly report about the Status of UK Fintech – Growth Rate (benchmark with 50 UK FinTech players): ► Total Revenues of top 50 UK FinTech companies in 2023: £6.2bn ► Revenues growth rate 2023 🆚 2022: +45% ► The annual revenues growth rate declined from 68% in 2022 to 45% in 2023 ► Combined positive #EBITDA of £169m (🆚 a total loss of over £300m in 2022) ► 17 companies are now profitable (34% of the panel) ► 20 companies are > the Rule of 40 (Growth Rate + EBITDA Margin should be over 40%) 🆚 10 in 2022 ► The median EBITDA margin was -39% (-96% in 2022) ► The revenues of the top 50 FinTech companies represented in 2023 around 5% of the total revenues of the top 5 UK Banks vs 3% in 2022 ► On average the companies in the FinTech index are 10 years old (the top 5 UK banks are on average 249 years old). Valuations: ► On average the FinTech panel is valued @ 11.1x Revenues (latest disclosed valuation considered); ► The FinTech sector in the US (70 listed players) is valued at 4.5x Revenues; ► In the UK, the main fintech listed players are Wise (8x revenues, 19x Earnings), AJ Bell (8x Revenues, 20x Earnings) and PensionBee UK (12x Revenues, still loss making). Kudo's to Davide Sangiovanni for this yearly update 👌 I highly recommend checking out the complete source piece (and follow this guy for more interesting updates!): https://lnkd.in/dWt_8ZfN Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ]

The State of The Top 50 #UK 🇬🇧 private #FinTechs The Key Takeaways from the latest annual reports: With the majority of 2023 FinTech Annual Reports now published, Davide Sangiovanni released his yearly report about the Status of UK Fintech – Growth Rate (benchmark with 50 UK FinTech players): ► Total Revenues of top 50 UK FinTech companies in 2023: £6.2bn ► Revenues growth rate 2023 🆚 2022: +45% ► The annual revenues growth rate declined from 68% in 2022 to 45% in 2023 ► Combined positive #EBITDA of £169m (🆚 a total loss of over £300m in 2022) ► 17 companies are now profitable (34% of the panel) ► 20 companies are > the Rule of 40 (Growth Rate + EBITDA Margin should be over 40%) 🆚 10 in 2022 ► The median EBITDA margin was -39% (-96% in 2022) ► The revenues of the top 50 FinTech companies represented in 2023 around 5% of the total revenues of the top 5 UK Banks vs 3% in 2022 ► On average the companies in the FinTech index are 10 years old (the top 5 UK banks are on average 249 years old). Valuations: ► On average the FinTech panel is valued @ 11.1x Revenues (latest disclosed valuation considered); ► The FinTech sector in the US (70 listed players) is valued at 4.5x Revenues; ► In the UK, the main fintech listed players are Wise (8x revenues, 19x Earnings), AJ Bell (8x Revenues, 20x Earnings) and PensionBee UK (12x Revenues, still loss making). Kudo's to Davide Sangiovanni for this yearly update 👌 I highly recommend checking out the complete source piece (and follow this guy for more interesting updates!): https://lnkd.in/dWt_8ZfN Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ]

The State of The Top 50 #UK 🇬🇧 private #FinTechs The Key Takeaways from the latest annual reports: With the majority of 2023 FinTech Annual Reports now published, Davide Sangiovanni released his yearly report about the Status of UK Fintech – Growth Rate (benchmark with 50 UK FinTech players): ► Total Revenues of top 50 UK FinTech companies in 2023: £6.2bn ► Revenues growth rate 2023 🆚 2022: +45% ► The annual revenues growth rate declined from 68% in 2022 to 45% in 2023 ► Combined positive #EBITDA of £169m (🆚 a total loss of over £300m in 2022) ► 17 companies are now profitable (34% of the panel) ► 20 companies are > the Rule of 40 (Growth Rate + EBITDA Margin should be over 40%) 🆚 10 in 2022 ► The median EBITDA margin was -39% (-96% in 2022) ► The revenues of the top 50 FinTech companies represented in 2023 around 5% of the total revenues of the top 5 UK Banks vs 3% in 2022 ► On average the companies in the FinTech index are 10 years old (the top 5 UK banks are on average 249 years old). Valuations: ► On average the FinTech panel is valued @ 11.1x Revenues (latest disclosed valuation considered); ► The FinTech sector in the US (70 listed players) is valued at 4.5x Revenues; ► In the UK, the main fintech listed players are Wise (8x revenues, 19x Earnings), AJ Bell (8x Revenues, 20x Earnings) and PensionBee UK (12x Revenues, still loss making). Kudo's to Davide Sangiovanni for this yearly update 👌 I highly recommend checking out the complete source piece (and follow this guy for more interesting updates!): https://lnkd.in/dWt_8ZfN Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ]

Unveiling the 2024 UK Fintech Top 50 Report (Top 50 UK private fintech companies). Takeaway 1: less growth but much more profit -      Total Revenues of top 50 UK Fintech companies in 2023: £6.2bn; -      Revenues growth rate 2023 vs 2022: +45%; -      The annual revenues growth rate declined from 68% in 2022 to 45% in 2023; -      Combined positive EBITDA of £169m (vs a total loss of over £300m in 2022); -      Chip, Oxbury Bank, Truelayer and Moneybox registered the highest revenues growth rate in 2023 (+800%, +243%, +189%, +183%). -      The 10 most profitable companies have also a higher growth rate than the rest (+74% growth rate vs 48% of the benchmark). Takeaway 2: The breakeven message was heard by the sector -      17 companies are now profitable (34% of the panel); -      20 companies are > the Rule of 40 (Growth Rate + EBITDA Margin should be over 40%) vs. 10 in 2022; -      The median EBITDA margin was -39% (-96% in 2022); -      For the second year in a row Oak North has the best EBITDA Margin (64%), followed by Starling (47%) and Trading 212 UK (33%); -      Median GP Margin of 76%, The companies with positive EBITDA have a GP Margin 35% higher than the unprofitable companies (81% vs 60%). Takeaway 3: Fintech is just 10 years old but represents already 5% of the total UK finance industry -      The revenues of the top 50 fintech companies represented in 2023 around 5% of the total revenues of the top 5 UK Banks vs 3% in 2022; -      On average the companies in the fintech index are 10 years old (the top 5 UK banks are on average 249 years old).   Takeaway 4: Valuation are still too high, new down rounds are coming -      On average the fintech panel is valued @ 11.1x Revenues (latest disclosed valuation considered); -      The fintech sector in the US (70 listed players) is valued at 4.5x Revenues; -      In the UK, the main fintech listed players are Wise (8x revenues, 19x Earnings), AJ Bell (8x Revenues, 20x Earnings) and Pension Bee (12x Revenues, still loss making).

The UK's FinTech scene is undergoing a seismic shift, with key trends shaping its trajectory in 2024 and beyond. Here's what you need to know: Increased Funding: The UK ranks second globally in FinTech investment, set to triple revenue in the next five years and double the number of FinTech companies by 2030, hitting a market value of £380 billion. AI-driven Data Intelligence Solutions: Artificial Intelligence is revolutionising FinTech operations, enhancing decision-making and risk mitigation through predictive analytics in asset management, risk assessment, and portfolio management. More Players and Increased Consumer Adoption: FinTechs are democratising financial services, making finance more accessible and transparent. Expect more people to join the FinTech revolution, contributing to its exponential growth. Effects of Brexit: Brexit poses challenges for UK FinTech, impacting market access and talent acquisition. The sector may face slower growth compared to other economies, with regulatory confusion adding to uncertainties. Regulatory Confusion: The UK FinTech sector grapples with regulatory ambiguities post-Brexit, navigating whether to adhere to EU or UK laws. Uncertainties in regulation can hamper growth and competitiveness. Easing Market Uncertainties: Despite challenges, the outlook is optimistic. As interest rates ease and investor confidence improves, startups can access affordable funding, fostering growth and innovation in the sector. In conclusion, the UK FinTech sector is resilient and poised for continued success. With opportunities for investment and collaboration on the horizon, the future of FinTech in the UK is bright. Read more: https://bit.ly/43F6Osj #UKFinTech #FutureTrends #Innovation

Unveiling the 2024 UK Fintech Top 50 Report (Top 50 UK private fintech companies). 🔹 Takeaway 1: less growth but much more profit - Total Revenues of top 50 UK Fintech companies in 2023: £6.2bn; - Revenues growth rate 2023 vs 2022: +45%; - The annual revenues growth rate declined from 68% in 2022 to 45% in 2023; - Combined positive EBITDA of £169m (vs a total loss of over £300m in 2022); - Chip, Oxbury Bank, Truelayer and Moneybox registered the highest revenues growth rate in 2023 (+800%, +243%, +189%, +183%). - The 10 most profitable companies have also a higher growth rate than the rest (+74% growth rate vs 48% of the benchmark). 🔹 Takeaway 2: The breakeven message was heard by the sector - 17 companies are now profitable (34% of the panel); - 20 companies are > the Rule of 40 (Growth Rate + EBITDA Margin should be over 40%) vs. 10 in 2022; - The median EBITDA margin was -39% (-96% in 2022); - For the second year in a row Oak North has the best EBITDA Margin (64%), followed by Starling (47%) and Trading 212 UK (33%); - Median GP Margin of 76%, The companies with positive EBITDA have a GP Margin 35% higher than the unprofitable companies (81% vs 60%). 🔹 Takeaway 3: Fintech is just 10 years old but represents already 5% of the total UK finance industry - The revenues of the top 50 fintech companies represented in 2023 around 5% of the total revenues of the top 5 UK Banks vs 3% in 2022; - On average the companies in the fintech index are 10 years old (the top 5 UK banks are on average 249 years old). 🔹 Takeaway 4: Valuation are still too high, new down rounds are coming - On average the fintech panel is valued @ 11.1x Revenues (latest disclosed valuation considered); - The fintech sector in the US (70 listed players) is valued at 4.5x Revenues; - In the UK, the main fintech listed players are Wise (8x revenues, 19x Earnings), AJ Bell (8x Revenues, 20x Earnings) and Pension Bee (12x Revenues, still loss making). 👉 Subscribe for more insights https://lnkd.in/d94JgWBU Source Davide Sangiovanni #fintech #banking #payments Brice Ali Alex Michele Nafis Monica Lex Theodora Saleh

🚀 Exciting news for the UK fintech sector! The UK has once again solidified its position as a leader in Europe's fintech industry, according to Finch Capital's latest report. 🇬🇧 Despite funding challenges across Europe, the UK fintech industry has shown a 3% increase in funding, reaching an impressive £2.2 billion in the first half of 2024. This marks a rise from £1.9 billion during the same period last year. 📊 Notably, the UK accounted for a significant 65% of fintech deals in Europe during this time. Among these deals, Monzo, a UK-based challenger bank, led the way by securing the largest deal in Europe with a whopping £500 million in equity financing. 💷 📉 While European fintech funding as a whole decreased by 25%, dropping from £3.2 billion in 2023 to £2.4 billion in 2024, certain sub-sectors, such as challenger banks, are showing promising signs of profitability. Challenger banks like Revolut and Monzo are thriving, thanks to higher interest rates contributing to their profitable growth. 📈 🇪🇺 Meanwhile, other European countries – including the Netherlands, Ireland, Germany, and France – are launching government-backed initiatives to boost their fintech sectors. However, the UK's fintech prowess remains unrivaled, with expectations for continued growth through 2025, even in this challenging environment. This is an exciting time for the UK fintech scene, and it will be fascinating to see how innovation and growth continue to shape the industry's future. 🌟 Let's stay tuned to see what the rest of 2024 has in store!

Boosts Boosts Boosts for Fintech - Fintech companies are quick to embrace new tech, which helps them grow faster than traditional banks. Key innovations driving this growth include: - Open Banking: Securely accessing consumer banking data allows fintech firms to offer personalized services, improve transparency, and boost competition. - Blockchain and Smart Contracts: These technologies make payments, lending, and security more efficient and transparent. - Generative AI and Big Data: Advances in AI and data analytics enhance customer service, fraud detection, and risk management. - Automation: Streamlining business processes cuts costs and improves efficiency. - Niche Products: Creating specialized solutions for specific customer needs adds unique value and drives growth. Challenges Facing UK Fintech Despite the growth, UK fintech faces several hurdles: - Regulatory Issues: Strict or slow-changing regulations can hinder innovation. It's crucial to balance consumer protection with an environment that encourages growth. - Brexit Uncertainty: Brexit has made cross-border operations and regulatory alignment more complex, affecting companies operating in both the UK and EU. - Cybersecurity Threats: Handling more sensitive data increases the risk of cyberattacks and data breaches, which can erode consumer trust. - Economic Instability: Economic downturns can reduce investment in fintech and lower consumer spending, slowing growth. - Venture Capital Slowdown: A dip in venture capital investment can limit funding for fintech startups, affecting their growth and innovation. - Lower Valuations: UK startups often have lower valuations compared to their US counterparts, making it harder to attract significant investment. Brexit’s Impact on UK Fintech Brexit has made it harder for UK fintech firms to get licensed and access markets in Europe. They face higher costs and more regulatory hurdles, like setting up new offices and hiring staff. Despite these challenges, the UK government is supporting the sector with grants, tax credits, and new laws to keep it competitive. Support Amid Venture Capital Slowdown The slowdown in venture capital investment has led to calls for more tax incentives and funding. The UK government’s Mansion House Compact encourages pension funds to invest in high-growth companies. The Centre for Finance, Innovation, and Technology is also working to remove barriers and create jobs. However, conservative investment approaches and lower startup valuations remain significant challenges for the sector’s growth. #FinancialServices #Partnership #Innovation #Investment #FinTalent #FinancialProfessionals #tech #Cybersecurity #security

Zain Bahrain, a leading telecom services company, has launched its new fintech company and Bede app as it seeks to change traditional methods of financial services by providing the latest technologies and solutions, supporting innovation and fintech development, in line with the kingdom’s comprehensive development goals. Announcing the new venture at a glittering ceremony held last night (February 6) at the Ritz-Carlton, Zain Bahrain said the 'Bede App in Bahrain marks a significant milestone in Zain FinTech's journey across its country markets and the kingdom's digital landscape, to drive financial inclusion and revolutionise the growth of the regional fintech ecosystem. Zain FinTech is the financial services arm of Zain Group and plays a key part in Zain’s ‘4Sight’ strategy by overseeing Zain’s fintech services across its operations in the Middle East and Africa. It focuses on rolling out innovative products and services related to payments, remittances, credit cards and micro-finance within the Zain ecosystem and beyond. Speaking at the launch, Minister of Finance and National Economy Shaikh Salman bin Khalifa Al Khalifa, said: "The private sector is playing a pivotal role in driving development through the implementation of quality initiatives and programmes that create promising opportunities for all." Bahrain, he stated, was committed to supporting priority sectors through a range of initiatives, notably those focused on technological and digital progress. "It is aimed at boosting Bahrain’s Economic Recovery Plan to foster investment and strengthen ties with the private sector, he noted.👇👇👇

Noticed that the recent "The Future of UK FinTech: 2015 – 2035" report features stats on embedded finance adoption in the UK, amongst the UK fintech trends it talks about. Some standouts for me: Adoption of Embedded Finance Three in five (60%) UK adults have used embedded finance services as part of the checkout process when shopping online in the past 12 months. Weavr's focusing on B2B embedded finance, but its great to see embedded finance being broadly adopted in the UK even with consumers. This all helps to reshape customer - not just consumer - expectations in how financial services are accessed. Integrating financial services into non-financial platforms should become normal, expected, unremarkable. Investment in UK FinTech  Despite a 34% drop in fintech investment in 2023, the UK remains a European fintech leader, attracting more funding than France, Germany, China, India, Brazil, and Canada combined. Janine Hirt, CEO at @Innovate Finance: “In 2023 alone, UK FinTech attracted $5.1bn in investment, second globally only to the US and ahead of all of the next 28 European countries combined. The UK is without a doubt a global leader in financial innovation and technology, but other countries are catching up quickly.” Which makes UK is a great place to build an embedded finance company ;-) #FinTech #Innovation #Investment #SMEs #Weavr #UKFinTech #FutureOfFinance @finextra @weavr 🔗 Read the full report here: https://lnkd.in/e7b25sWg