UK’s clearing bank now eyes European expansion, swipes off £175 million funding

Next-generation clearing and embedded banking platform in the UK, ClearBank has raised a £175 million equity investment. The round was led by funds advised by Apax Digital, the growth equity arm of private equity advisory firm Apax, and saw the participation of existing investors such as CFFI UK Ventures (Barbados) and PPF Financial Holdings.

The platform created some news in 2017 when it became the first new clearing bank in the UK in 250 years. Now, with the additional capital, it is setting sights on international expansion.

The investment will drive ClearBank’s ambition to power banking services for both financial institutions and non-financial brands, using its single API cloud-native embedded banking platform. It will also drive the company’s global expansion, initially in Europe before moving into North America and Asia Pacific.

Founded by Nick Ogden in 2016, who was also the founder of WorldPay, which was later on acquired by Fidelity, the clearing bank has a portfolio of 13 million accounts and £3 billion held in balances at the Bank of England. The UK banking rails provider serves over 200 financial institutions and fintech customers, including Tide, Coinbase, Chip and Oaknorth Bank.

Going forward, it will also expand its range of products and services to include direct API-based access to interbank payment schemes such as SEPA, enhanced multi-currency accounts, and additional FX services.

Charles McManus, CEO, ClearBank, said: “Our revenue growth is the proof of the momentum we have been gathering since 2017. WE are attempting to transform access to banking services, traditionally a space characterised by high barriers to entry, which has given us the credibility to partner with and deliver seamless and secure embedded banking for financial institutions, powerful fintech disrupters and government bodies alike. The next challenge is delivering this innovation globally. To achieve this, we needed a strategic partner with the right cultural fit, sector expertise and geographic experience, something we found in Apax Digital.”

Mark Beith, partner, Apax Digital said: “All companies are becoming fintech companies, and ClearBank is providing the clearing and embedded banking infrastructure for them – starting with fintechs themselves.”