2024_UK Fintech Top 50 Index

Unveiling the 2024 UK Fintech Top 50 Index (Top 50 UK private fintech companies).

Takeaway 1: less growth but much more profit

- Total Revenues of top 50 UK Fintech companies in 2023: £6.2bn;

- Revenues growth rate 2023 vs 2022: +45%;

- The annual revenues growth rate declined from 68% in 2022 to 48% in 2023;

- Combined positive EBITDA of £139m (vs a total loss of over £300m in the previous year);

- Oxbury Bank, Moneybox Flagstone registered the highest revenues growth rate in 2023 (+243%, +183% and +176%).

- The 10 most profitable companies have also a higher growth rate than the rest (+74% growth rate vs 48% of the median).

Takeaway 2: The breakeven message was heard by the sector

- 17 companies are now profitable (34% of the panel);

- 20 companies are > the Rule of 40 (Growth Rate + EBITDA Margin should be over 40%) vs 10 in 2022;

- The median EBITDA margin was -46% (-96% in 2022);

- For the second year in a row Oak North has the best EBITDA Margin (64%), followed by Starling (47%) and Trading 212 UK (33%);

- Median GP Margin of 77%, The companies with positive EBITDA have a GP Margin 35% higher than the unprofitable companies (81% vs 60%).

Takeaway 3: Fintech is just 10 years old but represents already 5% of the total UK finance industry

- The revenues of the top 50 fintech companies represented in 2023 around 5% of the total revenues of the top 5 UK Banks vs 3% in 2022;

- On average companies in the fintech index are 10 years old (the top 5 UK banks are on average 249 years old).

Takeaway 4: Valuation are still too high, new down rounds are coming

- On average the fintech panel is valued @ 10.4x Revenues (latest disclosed valuation considered);

- The fintech sector in the US (70 listed players) is valued at 4.5x Revenues;

- In the UK, the main fintech listed players are Wise (8x revenues, 19x Earnings), AJ Bell (8x Revenues, 20x Earnings) and Pension Bee (12x Revenues, still loss making).

2024_UK Fintech Top 50 Index

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