Flagstone, a FinTech savings platform based in London, has increased its assets under administration by more than double since the start of 2023, now reaching £13.5 billion. The company has consistently increased this amount by over £1 billion per quarter over the past 18 months. Flagstone’s customer base of individuals, small and medium-sized businesses and charities has also seen significant growth. In 2024, the number of active customers accessing its savings services increased by 21% from 600,000 to 725,000 from March to July alone. This trend can be attributed to the uncertainty of the Bank of England base rate and turbulence in the wider financial markets, prompting savers to make their money work harder while mitigating risk.
Simon Merchant, co-founder and CEO of Flagstone, stated, “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.” However, with mortgage affordability on the rise and an expected increase in appetite for other forms of credit, banks will continue to compete to offer competitive rates and inflation-beating returns on savings for months to come.
In March 2024, Flagstone raised £108 million in private equity from Estancia Capital Partners, marking the second largest UK FinTech fundraise in 2024. Flagstone has raised almost £150m from investors to expand its footprint both in the UK and internationally. Additionally, at the end of June 2024, the company recorded its sixth consecutive quarter of profitability, and 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, with the number of savings accounts available to Flagstone customers now standing at over 210. Merchant notes, “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 cannot. 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.”
Overall, Flagstone has experienced impressive growth in its assets under administration, customer base, bank partnerships and savings account offerings. Its success demonstrates the growing demand for innovative fintech services and the importance of cash savings as a rewarding asset class.
