ClearBank looks to acquire US bank ahead of global expansion
London fintech ClearBank is on the lookout to buy a US bank as it charts a course for international expansion.
The clearing services provider said it is seeking to buy a small American community bank as a fast means to getting a license to operate there. But CEO Charles McManus told the Standard the firm is open to making a larger acquisition, and would seek to tap investors for fresh funding if needed to complete the deal.
“We want to acquire an existing bank and put our technology into it,” McManus said.
“There are numerous community banks and they have got cheaper since the crisis. There are quite a few for sale — you can buy them for $20 to $25 million.”
ClearBank is also seeking to expand in the EU and has begun an application for a banking license via the Dutch central bank which it hopes to be authorised later this year.
The firm achieved its first full year of profitability in 2023, posting an £18.4 million ($23.3 million) pretax profit, up from a £7.1 million loss in 2022.
ClearBank said its model, where funds are held at the Bank of England, has made it attractive to clients looking to increase protection and provide better returns in a high-interest environment. It now holds £6.1 billion in deposits, more than double the amount held last year, as institutions seek out security and safety in a resilient banking partner.
The bank has seen payment volumes increase 54% year on year, totalling 108 million for 2023. This was driven by the significant expansion of its client base, the number of bank accounts held by them and their end-customers, and an acceleration in open banking transactions. Bank accounts held across all product offerings reached 10 million in total, a rise of 22%.
