FinecoBank (BI:FBK), a digital bank operating in the UK but based in Italy, says that the number of current accounts jumped by 70% during 2020 while the ratio between active accounts and total current accounts increased by 63% (from 15% in 2019). FinecoBank entered the UK market in 2017 amd combines brokerage and investment services as well as more typical banking offerings.
According to a presentation by FinecoBank the number of UK accounts is still quite small at just 10,900 as of January but the digital bank is seeking to increase. Management is looking to drive more effective customer acquisition, “focusing on the quality of our UK clients.”
Overall, Fineco reports a net profit of € 325 million in FY 2020 a 19% increase year over year. Revenue increased by € 776 million (+18% y/y) mainly driven by its brokerage business (€ 229 million, +73% y/y) and investing services (€ 245 million, +7% y/y).
Paolo Di Grazia, Vice General Manager of FinecoBank says they are attracting “not hit & run speculative and volatile customers, but experienced traders, loyal and looking for quality offer.”
“It’s a further evidence that we chose the correct positioning. With this boost to our generated revenue, we expect to be at operational breakeven in the first quarter of 2021. Thanks to this acceleration, we now expect to reach our first target of 30-35 thousand good clients well ahead of our predictions.”
While the transition from brick and mortar banking to digital banking is clear the market has become rather competitive as both incumbents and digital banking challengers fight for customers. The UK is one of the most robust digital banking markets in the world and if FinecoBank can make the investment to attract significant customers it could pay off in the long run.