Top 5 Best Challenger Banks: Cashplus

We recently asked Paybefore.com visitors to vote for the Best Challenger Banks—the ones shaking up the status quo with a legitimate chance to become the preferred accounts for their target consumers, not just a stepping stone to the high street banks.

For the next few weeks, we’ll be sharing our spotlight articles on these challengers, so you can evaluate them for yourselves. Meet our No. 1 on the list, Cashplus, and find out why CEO Rich Wagner says it belongs there.

Company Name: Cashplus

Location: London (London Bridge)

Opened for Business: 2005

Banking License: No

Investors/Funding: Since incorporation, the company has obtained funding from a number of different sources including equity and debt. Debt has been provided from a number of sources including shareholders as well as commercial lending banks.

“Cashplus is the original digital challenger to banks and has consistently proven what’s possible … constantly innovating and delivering the right products through the right channels for our customers to help them take control of their finances. Delivering consistent profits for over six years, Cashplus can rightly be described as one of the U.K.’s first fintech disruptors.” —Rich Wagner, CEO

In August 2017, Cashplus arranged a £25 million (US$32.3 million) funding line with major lenders allowing expansion of its lending facilities. Part of the current funding arrangements is the initial £7 .4 million (US$9.6 million) investment by funds associated with Trident Capital Inc.

In September 2016, Cashplus’s parent company launched its first mini-bond (offered via APS Bonds PLC). The inaugural fixed-term bond offer met expectations and the first interest payments have already been paid to its investors.

Flagship product: The Cashplus Current Account

Secret Sauce: Cashplus is passionate about leveling the playing field and giving as many people as possible access to straightforward, fast and efficient alternatives to “traditional” banking services. We provide business and personal accounts to customers getting a raw deal, or even no deal from high street banks.

Primarily, our research indicates that it still takes, on average, more than two weeks to open a business bank account and more than 15 percent of startups and small to medium businesses (SMEs) wait more than 26 days. Cashplus customers get a decision in as little at three minutes.

Cashplus also provides access to a short-term line of credit, through which more than £1 million (US$1.3 million) of financing has been provided to SMEs, enabling thousands of great ideas to be launched. Since October 2015, Cashplus has seen a huge demand for its services—a 93 percent year-on-year growth in demand for capital from SME businesses alone. As the referral partner of choice for many of the leading SME and startup accounting firms in the U.K., Cashplus is the only digital business current account integrated with all main accounting software providers in the U.K.

Unique within the fintech sector, Cashplus has been profitable for many years and reported £5.6 million (US$7.2 million) EBITDA profit for the year ended March 2017.

Active customers: Over the past 13 years, Cashplus had served more than 1.3 million U.K. customers. As of August 2017, nearly 95,000 SMEs have opened an account with 78 percent of holders using it as their primary banking solution. More than 40,000 customers visit Cashplus’s mobile app to manage their accounts each month.

Target customers and growth strategy: Of the 5.5 million businesses in the U.K., 99 percent fall within the SME bracket, which is a key focus area for Cashplus. This hugely important segment is responsible for 60 percent of all private sector employment and nearly half of the U.K.’s total private sector turnover in 2015.

Why do you deserve to be on this list? Cashplus is the original digital challenger to banks and has consistently proven what’s possible. We have remained ahead of the curve, constantly innovating and delivering the right products through the right channels for our customers to help them take control of their finances. Delivering consistent profits for over six years, Cashplus can rightly be described as one of the U.K.’s first fintech disruptors.

Related stories: 

• Top 5 Best Challenger Banks: Varo Money
• Top 5 Best Challenger Banks: Capital on Tap
• Top 5 Best Challenger Banks: Revolut