FinTech savings platform Flagstone has more than doubled the size of its assets under administration since the start of 2023 to 拢13.5 billion.
The London firm has consistently increased this by more than 拢1 billion per quarter in the last 18 months.
Its customer base of individuals, small and medium-sized businesses and charities has also increased significantly. Between March and July 2024 alone, the number of active customers accessing Flagstone鈥檚 savings services increased by 21% from 600,000 to 725,000.
鈥淯ncertainty around the Bank of England base rate and turbulence in the wider financial markets are prompting more savers to think about what they want to do with their savings and take action to make their money work harder for them while mitigating risk,鈥� said Simon Merchant, co-founder and CEO of Flagstone.
鈥淎cross the market it鈥檚 not been hard to find inflation-beating returns for all sizes of deposits and types of accounts – from instant access to multi-year fixed terms. As the Bank of England base rate starts to edge downwards for the first time in over four years, it鈥檚 reasonable to expect some softening in the sorts of rates on offer.聽
鈥淣evertheless, with mortgage affordability now set to rise and appetite for other forms of credit expected to increase, we鈥檙e going to see continued competition among banks to offer competitive, inflation-beating returns on savings for months to come.鈥�
Will Revolut IPO in UK or US? FinTech set for government talks
In March 2024, Flagstone raised 拢108 million in private equity from Estancia Capital Partners, marking the second largest UK FinTech fundraise in 2024. To date, Flagstone has raised almost 拢150m from investors to expand its footprint both in the UK and internationally.
At the end of June 2024, it recorded its sixth consecutive quarter of profitability. The team continues to reinvest profits in high performance operations and expansion through more bank and brand partnerships.聽
Since spring 2024, the number of banks offering savings accounts on Flagstone has increased by 10% to 66 and the number of savings accounts available to Flagstone customers now stands at more than 210.
Merchant continued: “We鈥檙e encouraged by these 18 months of widespread demand and adoption not just from customers but from our partners too. Expanding our panel of banks by 10% in less than six months is a good indicator of the seriousness with which banks and advisers are treating cash savings as an important and rewarding asset class.
鈥淭he speed and breadth of our growth in the last 18 months demonstrates the ideal opportunity for fintech businesses to tread where traditional financial services can not. Flagstone鈥檚 relentless fintech innovation is helping more savers to see that cash isn鈥檛 simply a safe haven for the risk-adverse to keep their rainy day savings, but a highly competitive, high-return, low-risk alternative asset class in its own right and an essential component of every personal finance plan.鈥�