Banking Technology Magazine July / August 2024 issue out now
Cover story: MONEY TALKS – Cash still playing an important role in society.
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Welcome to the summer edition of the Banking Technology magazine.
As we are now over halfway into 2024, the industry is taking stock of the eventful first half of the year – the good, the bad and the ugly.
The good: several banking challengers reported healthy profits, including Oxbury, a UK-based bank for farmers, which has become one of the fastest among its peers to achieve profitability (less than three years since launch) – recording a pre-tax profit of more than £3 million in 2023.
Another two UK challenger banks, Atom and Starling, have also reported notable revenue growth and profitability.
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Revolut’s revenue surged by 95% over the year, to $2.2 billion in 2023. It also secured a record profit before tax of $545 million, with a net profit of $428 million.
The bad: global fintech investment fell by 19% in H1 2024 compared to H2 2023 amid an “economic slowdown”, according to the latest report by Innovate Finance, a UK-based independent industry body. The total capital invested in fintechs worldwide during this period amounted to $15.9 billion, compared to $19.5 billion in H2 2023.
The total number of funding rounds was also down to 1,566 from 1,661. The UK fintech community secured $2 billion in funding spread across 183 deals, which is second only to the US ($7.3 billion across 599 deals). And even though the UK has received more investment than all other European countries combined, accounting for 12.7% of the global fintech market, it is still a 37% decrease from the previous six months.
The ugly: the Synapse collapse saga rumbles on. The latest developments include a cease and desist order against its partner, Evolve Bank, and an appeal from US senators to the Synapse owners, partners and investors to immediately restore customers’ access to their money.
Whatever happens in the second half of this year, it won’t be boring
Click here to read and download the free digital edition of Banking Technology Magazine July/August 2024.
