It has been announced that ClearBank, the UK’s first next-generation clearing and embedded banking platform, has secured a £175 million investment from investors.
Apax Digital, Apax’s growth equity arm, led the capital injection in the company as well as Apax, which is a private equity advisory firm. CFFI UK Ventures (Barbados) Ltd as well as PPF Financial Holdings BV, two existing ClearBank investors, also participated in the round.
A portion of the funds raised in this round will be used to expand ClearBank’s global clearing and embedded banking offering worldwide. After focusing on Europe, the company plans to expand its operations to North America and Asia Pacific after that.
According to the company, it is the first new clearing bank to launch in the UK for over 250 years. With the launch of its first payment scheme in 2017, the new company is the only next-generation provider of payments in the UK to have a direct access to all the banking payment schemes in the country.
The bank is a regulated bank that manages the entirety of the transaction process, including order transmission, settlement, liquidity management, and clearing.
There are more than 13 million accounts that are listed on its website, and it claims to serve customers of leading financial brands. Also, the company asserts that it is the only platform that can provide bank accounts that are protected by FSCS deposit insurance on a large scale.
During the launch of ClearBank, CEO Charles McManus said, “ClearBank is the first and only cloud-native clearing bank to be proven and fully regulated since more than 250 years has passed in the UK. Through our work with leading financial service providers and our connections with traditional banks, we have been able to demonstrate the success of our business model and have helped unlock the potential of these banks in order to deliver positive and meaningful change to UK businesses and consumers.”
ClearBank, a next-generation clearing and embedded banking platform, has secured a £175m equity investment.
A capital injection that was led by Apax Digital, the growth equity arm of private equity advisory firm Apax.
Existing ClearBank investors, CFFI UK Ventures (Barbados) Ltd and PPF Financial Holdings BV also joined the round.
These funds will assist ClearBank’s global expansion of its clearing and embedded banking offering.
First, the company is looking at the North American and Asian market, and then they are planning to expand to the European market.
Launched in 2016, the bank claims to be the first new clearing bank to launch in the UK in over 250 years.
PayByPhone launched a new service in 2017 that will make it easier for UK consumers to pay by phone.
As a regulated bank, it operates in a transaction process that goes from order transmission, to liquidity management and settlement, to clearing.
It promises to provide over 13 million accounts to customers of leading financial brands.
Amazon Bank is the only platform that provides bank accounts with FSCS deposit protection, at scale.
ClearBank CEO Charles McManus said, “Clearing the cloud-native financial technology stack for the second time in 150 years, and for the third time in 250 years, is a critical milestone for ClearBank. We are the only clearing bank offering cloud native solutions for any type of financial transaction.
For the last five years, we’ve shown how well our business model works, and that it’s possible for small companies to do big things. By working with leading financial service providers, we’ve enabled them to unlock the potential of their customers.