Bristol, U.K.-based ClearBank has applied for a license to expand its services to Europe in search of growth. 

ClearBank officials are hopeful for approval from the European Central Bank in the second quarter, Paul Staples, group head of embedded banking, told Bank Automation News. 

 “This will be a full Dutch banking license that we will have with direct clearing into the [European Central Bank]. Much like [the] U.K. model where we hold everything directly with the central bank, we will be doing the same in Europe,” he said.

ClearBank provides clearing and embedded finance services to more than 200 fintechs and financial institutions, including, digital currency trading platform Coinbase, digital bank Tide, digital investment platform Wealthify and trading platform etoro, according to the ClearBank website. 

The EU license would enable ClearBank’s clients in the United Kingdom to expand “from the U.K. into Europe to navigate European waters on a single consistent banking platform,” Staples said. 

Growing operations

ClearBank expects its revenue and client base to double in the next 12 to 24 months, partly due to expanding into new geographies, Staples said.  

“Europe is materially bigger than the U.K. market, and the two of them are intrinsically linked,” he said. 

ClearBank in September reported that its revenue increased 144% year over year to 49.3 million pounds ($63.1 million) in the first half of 2023. 

Before teaming with a fintech, the bank evaluates the proposition of the offering, compliance with regulations and the fintech’s ability to be a credible ClearBank client, Staples said. 

Being selective allows ClearBank to reduce risk on its portfolio and grow a healthy roster of clients over time, Staples said. 

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