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Interim Budget 2024: What are the priorities for the fintech industry? Here's what experts say: The Fintech industry has already experienced regulatory reforms in the past year, and it anticipates that the upcoming Budget will further promote ...

Interim #Budget2024 : What are the priorities for the fintech industry? Here's what experts say

UK challenger bank Monzo looks set to take another crack at the US market after raising a $430 million war chest at an improved $5 billion valuation. The new round, led by Alphabet-owned growth fund CapitalG, is a bump up from Monzo’s $4.5 billion price tag achieved in 2021. With the new funding, Monzo is hoping to reenter the US after it had to withdraw its application for a US banking license in 2021. In October, the bank hired former Cash App product head Conor Walsh to lead its expansion efforts across the pond. Monzo has also managed to sidestep the banking license issue by partnering with Ohio-based Sutton Bank, which will hold all customer deposits. Monzo’s valuation step-up is a rare bright spot for Europe’s fintech market, which has been struggling since the VC bubble burst. At its peak in 2022, €24.1 billion (about $26.2 billion) was invested in the sector, according to PitchBook data, before falling to just €8.9 billion last year. So far, 2024 is off to a slow start in terms of dealmaking. Although fintech valuations have largely remained steady, the median post-money price tag for late-stage companies in the space suffered a substantial cut, reaching €21.3 million in 2023 compared to €35.2 million the year before. https://lnkd.in/eeEsg8VJ

Revolut: Too Big to Succeed? Following the financial crisis, people labeled legacy banks as "too big to fail." Today, we might wonder if "too big to succeed" is a more fitting for the ambitious start-ups attempting to usurp these giants.   Revolut is one start-up targeting a valuation exceeding $40 billion in an upcoming share sale, which would cement its status as Europe’s most valuable start-up. Backed by SoftBank and working with Morgan Stanley, Revolut aims to sell around $500 million worth of existing shares, including those held by employees.   Achieving this valuation would not only surpass its 2021 valuation, but also place it on par with major players like Lloyds Banking Group. This ambitious target comes despite a challenging market for European fintechs, as seen with Klarna’s recent valuation drop. The mass exodus on the London Stock Exchange (LSE) due to undervaluations and high compliance costs further compounds this.   Upcoming reforms to UK listing rules were praised by the chair of Revolut but remains cautious about committing to a London initial public offering (IPO). As Revolut reports record profits, this development brings both opportunities and challenges.   This marks a change from previous remarks by CEO Nikolay Storonsky, who had previously dismissed the UK regulatory environment. Despite challenges, including auditors' warnings and a prolonged UK banking license application, Revolut remains ambitious. The group expanded its loan book to £528 million and significantly increased advertising and marketing costs. Furthermore, reporting a pre-tax profit of £438 million in 2023, up from a loss of £25 million the previous year. Revenues almost doubled to £1.8 billion, driven by new products and millions of new customers.   However, a banking license is key for the fintech firm in the UK to boost lending and profit, on which a third of its customers are based. On the other hand, a potential IPO on the LSE could revitalize the sector to its former glory. Therefore, regulators face a difficult decision. While granting the UK banking license could increase the likelihood of Revolut listing on the LSE, it could also trigger auditor warnings. Sources: https://lnkd.in/gxzzKCNY https://lnkd.in/gQDebrth https://lnkd.in/g_Q77JZs

From Tony Blair to Monzo Bank, key players demand UK fintech reform. 💡 Fintech has returned to being the UK’s most-funded tech sector but the country is at risk of losing its crown, according to a handful of new policy recommendations from the likes of Monzo, Revolut and The Tony Blair Institute for Global Change. Two major fintech policy reports have been published this week as data revealed the sector raised $1.4bn in the first quarter, more than any other in the UK. ➡️ https://lnkd.in/eYBTmbSd 🔗 #fintech #banking #policy #report #tonyblair #funding #UKtech

#UK #Treasury Wants #Revolut to Go Public on #LondonExchange: The #British treasury wants #London-based #FinTech Revolut to go #public in its home country. city minister #TulipSiddiq is expected to meet Revolut this fall as part of a series of talks with businesses. However, Revolut’s possible listing is likely to come up. The company has no firm plans for an initial public offering (#IPO) but has indicated that it was prioritizing a listing on the #Nasdaq in the U.S. such a move though it could be years away, would be a blow to the U.K. #markets, which have lost several #companies to #NewYork. The company has recently launched the #secondary #share sale to generate liquidity to #employees and to draw both new and existing #investors, and attributed the valuation to its financial performance in recent quarters, including revenues of $2.2 billion in 2023 — a figure that’s 95% higher than that of the prior year — and a profit before tax of $545 million, a company record. https://lnkd.in/dyzB9jhG

Revolut's on track to smash past £1.5bn in 2023 revenue. That's a significant leap from £850m last year. 📊 💡 Key points: ➡ High interest rates are boosting their EU business. ➡ They're adding a staggering 300,000 users weekly, eyeing 40 million globally. 🌍 ➡ Yet, they're still in pursuit of a UK banking license – a crucial step for their home market growth. Challenges remain, like delayed financial filings and IT system concerns. But their rapid user growth and strategic moves keep them in the spotlight. 🚦 For the fintech sector, this signals: ➡ Flexibility in market shifts is vital. ➡ Regulatory navigation is non-negotiable. ➡ Growth and robust tech go hand in hand. Revolut's story isn't just about numbers; it's a roadmap and a cautionary tale for the fintech industry as a whole. Stay tuned, and let's see how this plays out! #Fintech #FinancialTechnology #fintechNews #NeoBanks #NeoBank #Revolut #BusinessGrowth #FinancialTrends

Revolut says secondary share sale valued firm at $45B Revolut Ltd. said a secondary share sale that allowed the company to give employees liquidity for their stakes valued the company at $45 billion. The round was led by investors Coatue, D1 Capital Partners and Tiger Global, according to a statement. Morgan Stanley served as sole placement agent on the deal. The new valuation is up from a $33 billion price tag that Revolut garnered in 2021. Unlike many of its rivals across the fintech landscape, Revolut hasn’t had to raise money in recent years, allowing it to avoid the sharp declines in valuation that many of its peers suffered as high interest rates forced investors to reconsider their support for the space. Klarna Bank AB, for instance, was last valued at $6.7 billion valuation in a 2022 funding round, which was a far cry from the $45.6 billion valuation it received from investors just a year earlier. The Stockholm-based company is also in early talks with investors to gauge their interest in buying up existing shares of the company on the secondary market. Revolut’s announcement caps a process where the company was in talks with investors to sell about $500 million of existing shares, Bloomberg News previously reported. It also comes just weeks after Revolut received a long-awaited banking license from UK regulators. Coatue has a “high level of conviction” in its investment in Revolut, Philippe Laffont, founder and portfolio manager for the investment firm, said in the statement. Revolut Chief Executive Officer Nik Storonsky said he was “delighted” to provide employees with the liquidity. — By Aisha S Gani (Bloomberg News) https://lnkd.in/gZ82R4sm via Bank Automation News https://lnkd.in/dwP6ziAm August 16, 2024 at 02:06PM

Revolut announces record profits of USD$545 million in 2023 #ukfintech #fintechuk #fintech #fintechnews #news #finance #technology #financialtechnology #tech #technews #profit #revenue