ClearBank, the largest digital banking platform in the UK, in association with Apax Digital, recently raised GBP175 million in an effort to accelerate global expansion. The funds raised were by way of equity investment, and the fundraising was led by Apax Digital, the growth division of Apax, which is a leading global private equity fund. The round also saw participation of existing investors, including CFFI UK Ventures, and PPF Financial Holdings BV.
ClearBank is the first new digital clearing bank in the UK in over 250 years when it was launched in 2017. ClearBank is the only digital banking platform that delivers direct access to all payment schemes in the UK, and boasts over 13 million accounts and over GBP3 billion held in the Bank of England. Currently, ClearBank provides service to over 200 financial institutions and includes Coinbase, Chip, Tide and Oaknorth Bank. In Deloitte’s 2021 Fast 50 tech awards, ClearBank was ranked as the fastest growing fintech company in the UK.
Charles McManus, CEO of ClearBank, said that ClearBank has demonstrated the success of its business model, and unlocked the full potential of financial services providers, thereby facilitating positive change for UK based businesses and customers. He also said that the astonishing revenue growth is proof of the growth the company has sustained since its launch in 2017. McManus stated that due to this proof, the company is able to work seamlessly with financial institutions, other fintech companies, and also government entities.
The investment raised is expected to power ClearBanks ambtion to support financial and non-financial institutions using its cloud-native, single API embedded banking platform, on a global scale. Initially, ClearBank is expected to expand to Europe, and later to North America and Asia Pacific regions.
Apax Digital offers strategic fit for ClearBank
McManus added that the next challenge for the company will be to deliver its platform functionality on a global scale. He stated that to achieve this, ClearBank had partnered with Apax Digital, which offered sector expertise, cultural fit and geographic experience.
In addition to geographic expansion, ClearBank is slated to expand its product range to include API-based access to interbank payment systems, multi-currency accounts and other financial services. This expansion of product range will allow ClearBank customers to scale on an international level and attract new customers from multiple markets.
Apax Digital is the growth division of Apax, a global private equity advisory firm. The team at Apax Digital utilizes the company’s investing expertise and diverse global platform to enable technology companies achieve their full potential.
Partner at Apax Digital, Mark Beith, stated that with the trend of companies embracing fintech, ClearBanks embedded banking infrastructure is a powerful tool, and that the company was excited to partner with ClearBank to leverage this advantage on a global scale.
Niccolo Ferragamo, Principal at Apax Digital, added that combining a banking license with tech is difficult, and delivering customer satisfaction especially hard. He said that ClearBank has been discreetly building the next-gen leader in the UK market on all focal points.
Combining the use of its banking license with robust and intelligent technology solutions, ClearBank offers its partners the opportunity to avail real-time payment solutions and cutting-edge banking services to customers. ClearBank, in association with its partners, aims to meet the demands of next-gen consumers and businesses.
The team at Apax believes that results are driven by a collaborative culture that looks, listens and learns across boundaries to inspire growth with its partner companies. The company is of the firm conviction that a blend of specialist sector knowledge, hands-on operating experience and incisive global perspectives delivers the best results. Apax works alongside management teams with a goal of mutual success through mutual vision.