Prestige Business Management banking partner Revolut, is on track to rank among the most valuable technology companies ever created in Britain by Autumn 2021, following their planned financial activity.
Europe’s Youngest Fintech Billionaires
Revolut’s latest fundraising strategy will value the company at more than £7.2bn and cement founder Nik Storonsky as one of Europe’s youngest fintech billionaires. Revolut now has a presence in 35 countries and they are in the process of applying for a UK banking licence, which will allow it to take deposits in its home market. The company last raised external funding 14 months ago when the US-based investor TCV led a $500m (£361m) funding round, valuing Revolut at $5.5bn (£3.98bn). Precise figures are unlikely to be finalised for several months and partially depend on investor demand. The new private funding round is likely to leave Revolut short of being Europe’s most valuable fintech, currently Swedish payments group Klarna. Following a recent funding round, Klarna is now worth $31bn (£22.4bn). Revolut will nevertheless rank among the most valuable technology companies ever created in Britain.
Record High Valuations in Private Tech Companies
A global wave of investor interest in public and private tech companies has propelled valuations to record highs – fuelled by a deluge of US-listed special purpose acquisition companies (SPACs). Mr Storonsky has signalled in the past that he does not foresee taking Revolut public until it is worth at least $20bn. While Revolut is said to have been approached by a number of SPACs in recent months, a private capital-raise looks inevitable this year barring a radical change of heart from its board. Revolut is chaired by City veteran Martin Gilbert. Former Goldman Sachs International co-chief executive Michael Sherwood also sits on its board. The company recently introduced an equity participation plan for its 2200 employees.
Disruptive Fintech Start Ups
Fintech, an abbreviation of financial technology, is currently the UK’s strongest startup sector. Ambitious, innovative start ups are driving real change for consumers and business. Fintech start ups provide streamlined banking services, unpacking financial services, challenging traditional banks and payment and lending services.
Top Ten Best Fintech Start Ups in the UK
Prestige Business Management partner Revolut is a unicorn start up operating as a challenger bank. They offer a range of digital banking services via their mobile app. Since its launch in 2013, Revolut has facilitated over 350 million transactions worth over £40b, whilst serving over 9 million customers. This platform can help small businesses who are starting-up and taking those tentative first steps towards growth by providing scalable banking solutions. From virtual bank cards, easy-to-add physical pre-paid cards, simple batch payments along with international payment processes; Revolut can help businesses thrive by offering a platform that matches their own unique business needs 365 days a year. Find out more about our partnership and click here to sign up.
2. OakNorth Bank
A ‘bank for entrepreneurs by entrepreneurs’, OakNorth Bank provides fast, flexible and accessible debt finance solutions to fast-growth businesses and a range of deposit accounts. Now one of the most active lenders in the UK. Since launching, it has lent over £4.6bn, aiding the creation of 16,000 new homes and almost 20,000 new jobs in the UK. Their business model allows all borrowers the opportunity to attend credit committees where they can discuss their business’ growth plans and funding requirements, directly with the decision makers. These loans can also extend to acquiring property finance to support property developers and investors. In addition to loans, businesses can also choose from a range of business savings accounts, such as Fixed Term savings, Notice and Easy Access accounts.OakNorth also provides a range of FSCS protected personal savings accounts to individuals, including fixed term, easy access and notice accounts.
A digital-only banking service, with all services provided through its app. This platform offers savings accounts, mortgages and business loans. The movement away from current accounts, with no bank card issued, and the lack of any physical branch, has seen Atom differentiate itself from many of its challenger bank competitors. Atom’s savings accounts, mortgages and business loans are all available through its app. Its fixed savings accounts range from three months to five years, with either monthly or annual interest. These accounts offer competitive interest rates, with the money saved from forgoing physical branches intended to provide these attractive rates. For instance, one year fixed savings accounts offer 1.5% annual interest. Atom also offers mortgages, with advice provided by an independent broker to help customers obtain the best deal. Mortgage repayments can be monitored in real-time through the app. Thirdly, Atom’s business loans are offered to Limited companies, Limited Liability Partnerships, and Sole traders, with a maximum loan-to-value of 75% offered for commercial property investments.
A digital-only banking service offering current accounts and a range of banking and money management features. Monzo has over 3 million users. Monzo offers other unique banking services. ‘Salary Sorter’ helps users to divide their spending, bills and savings into one organised place. Users can also spend overseas using the Monzo Mastercard, with no additional fees added to the exchange-rate. The first £200 of overseas withdrawals are also free for 30 days, with a 3% fee charged after this time.
iwoca provides short-term Loans’s small UK businesses, ranging between £1,000 – £200,000. Most small businesses tend to use these loans for bridging short-term cash flow gaps and investing in stock opportunities. A key feature of iwoca’s business is the ability for its technology to quickly and fairly assess the risk of a small business applying for a loan. Lending decisions take into account company accounts, bank statements, and VAT returns, rather than solely using a credit score.
Paymentsense delivers payment solutions to over 70,000 small businesses in the UK and Ireland. Paymentsense provides a range of face-to-face card payment machines: specifically countertop, portable and mobile card machines. This software also allows users to create and analyse sales reports to help businesses generate overviews and insights of their performance. Paymentsense processes over 250 million transactions per year, totalling over £10b worth of sales. The countertop machine is designed for payments made at the till, the portable machine can process payments made within a 100-metre range from the till and the mobile machine uses SIM card and GPRS connection, enabling the machine to be used anywhere. Paymentsense also offers several virtual payment methods through its payment gateway, which acts as an online version of a physical payment machine. Three payment gateways are offered; Pay Online, where payments can be directly made through a business’ website at the checkout stage; Pay by Email, where a link is set up to generate payment through emails; and Pay by Phone, where a secure virtual terminal is set up which enables customers’ payment information to be entered into via phone.
SumUp offers a payment processing system using smart devices. Payments can be processed either through a payment link sent to the customer’s mobile device or through an attachable card reader. As well as accepting payments, SumUp provides admin features by tracking sales and taxes plus a digital cashier by keeping track of cash payments and digital receipts. They offer a range of smart payment solutions that utilise whichever device or type of point of sale suits your business. Payments can be processed anywhere, without the need for a paired mobile device or app. Thirdly, SumUp offers point of sale registers, which includes tablets, a cash drawer, receipt printer and SumUp Air to create traditional retail POS. Investors include Goldman Sachs and Bain Capital.
WorldRemit offers an online money transfer service. This platform prides itself on its quick transfer services, with over 90% of transactions authorised within minutes. The technology company serves over 4 million customers worldwide. Various payment options are offered, including bank transfer, cash pickups from collection points, mobile money (an electronic wallet service), and door-to-door. Most of these options result in transfers arriving instantly, with door-to-door home deliveries operating 24/7, depending on location. WorldRemit charges a transfer fee for each transaction, which varies based on the amount and currency being transferred. Users have a number of options to pay this fee, including bank transfer, debit card and credit card.
Wise fintech unicorn start up has developed a platform that utilises smart technology and lower costs to offer its users the real exchange rate, rather than an inflated one, which is often charged by traditional banks. In return for its services, Wise charges a transfer fee which varies depending on the amount required. Its money transferring services are also offered worldwide—Wise is available in 59 countries with £4b sent every month. While Wise is a digital payments company like Paypal or Stripe, its main selling point is sending money abroad, with users able to lock in a favourable exchange rate for 24-48 hours. Customers also benefit from the TransferWise debit Mastercard, which has zero foreign transaction fees and free ATM withdrawal fees worldwide. Business accounts are available for sole traders, SMEs and enterprise-level businesses who have monthly international payments of £200k or more.
Checkout.com fintech unicorn start up has developed software that allows businesses to process their payments online in multiple currencies. Checkout.com processes 150 different currencies and offers direct access to all major international cards whilst also accepting popular local payment methods. Checkout.com’s unified payments platform helps to manage every stage of the payment process. It offers businesses faster payment processing, by combining several separate payment technologies into one platform. It also accepts a variety of different payment methods, with direct access to Visa, Mastercard, American Express as well as popular alternative and local payment methods.
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