UK-based cash deposit platform, Flagstone, has reported a fifth consecutive quarter of profitability at the start of 2024.
Flagstone’s total Assets under Administration (AUA) currently stands at £11bn. AUA increased by over £1bn per quarter in 2023 as more savers looked to maximise the interest they earn.
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Flagstone recorded its first quarter of profitability for the quarter ending December 2022. It has maintained a profitable position ever since.
During the last 18 months, Flagstone has also grown its bank and brand relationships. It has become the largest cash deposit platform by the number of banks on its panel and the number of savings accounts available to its 600,000 customers.
Flagstone: access to over 200 savings accounts from 60 providers
Individuals, SMEs and charities using Flagstone gain access to over 200 savings accounts from 60 of the UK’s savings providers. These range from the largest incumbent banks to challengers.
Simon Merchant, Co-Founder and CEO of Flagstone, said: “Achieving a position of profitability has been a priority for everyone in the business since late 2022 when customer and partner demand for Flagstone’s capability and access grew substantially. Growth at all costs has never been our strategy. Instead, we’re firmly of the view that, regardless of the headwinds we find ourselves in, any fintech serving consumers has a responsibility to pursue a stable, resilient position of profitability. A sure financial footing provides protection and certainty for customers, as well as a platform from which even more innovation can be prompted.”
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By GlobalDataOnly 23% of UK savers switched accounts to earn more interest
In the first half of 2023 less than a quarter (23%) of UK savers switched accounts to earn more interest. Conversely, the average Flagstone customer spreads their savings across five accounts at any time. And will move savings between accounts seven times a year to maximise interest earning potential.
Merchant added: “The UK savings market is in a quandary. On the one hand, there are hundreds of high-income savings options available to all savers on the market. On the other, the appetite to find these accounts and switch to earn more interest simply isn’t there.
“Flagstone savers see that cash isn’t simply a safe haven for the risk-adverse to keep their rainy-day funds. It’s an asset class in its own right generating risk-adjusted income that’s hugely competitive versus other asset classes. All the more so in a turbulent economic environment with inflation and rates unsure which way to move. It’s an ideal opportunity for fintech to tread where traditional financial services cannot and solve the problem of saver inertia.”
