FinTech savings platform Flagstone has more than doubled the size of its assets under administration since the start of 2023 to £13.5 billion.
The London firm has consistently increased this by more than £1 billion per quarter in the last 18 months.
Its customer base of individuals, small and medium-sized businesses and charities has also increased significantly. Between March and July 2024 alone, the number of active customers accessing Flagstone’s savings services increased by 21% from 600,000 to 725,000.
“Uncertainty around the Bank of England base rate and turbulence in the wider financial markets are prompting more savers to think about what they want to do with their savings and take action to make their money work harder for them while mitigating risk,” said Simon Merchant, co-founder and CEO of Flagstone.
“Across the market it’s not been hard to find inflation-beating returns for all sizes of deposits and types of accounts – from instant access to multi-year fixed terms. As the Bank of England base rate starts to edge downwards for the first time in over four years, it’s reasonable to expect some softening in the sorts of rates on offer.
“Nevertheless, with mortgage affordability now set to rise and appetite for other forms of credit expected to increase, we’re going to see continued competition among banks to offer competitive, inflation-beating returns on savings for months to come.”
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In March 2024, Flagstone raised £108 million in private equity from Estancia Capital Partners, marking the second largest UK FinTech fundraise in 2024. To date, Flagstone has raised almost £150m from investors to expand its footprint both in the UK and internationally.
At the end of June 2024, it recorded its sixth consecutive quarter of profitability. The team continues to reinvest profits in high performance operations and expansion through more bank and brand partnerships.
Since spring 2024, the number of banks offering savings accounts on Flagstone has increased by 10% to 66 and the number of savings accounts available to Flagstone customers now stands at more than 210.
Merchant continued: “We’re encouraged by these 18 months of widespread demand and adoption not just from customers but from our partners too. Expanding our panel of banks by 10% in less than six months is a good indicator of the seriousness with which banks and advisers are treating cash savings as an important and rewarding asset class.
“The speed and breadth of our growth in the last 18 months demonstrates the ideal opportunity for fintech businesses to tread where traditional financial services can not. Flagstone’s relentless fintech innovation is helping more savers to see that cash isn’t simply a safe haven for the risk-adverse to keep their rainy day savings, but a highly competitive, high-return, low-risk alternative asset class in its own right and an essential component of every personal finance plan.”