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Flagstone, a leading fintech savings platform, has more than doubled its assets under administration (AuA) within the past 18 months as UK savers increasingly chase better interest rates amid financial uncertainty. The London-based company reported a 125% increase in AuA, reaching £13.5 billion since January 2023, with over £1 billion added each quarter.
In addition to the significant growth in assets, Flagstone has seen a 21% rise in active customers, now totaling 725,000. The platform, which launched in 2015, offers access to over 210 accounts from 66 UK banks, including six new partners added since March. Flagstone also white-labels its services for companies like ST JAMES’S PLACE, REVOLUT, and SAGA.
Simon Merchant, co-founder and CEO of Flagstone, attributed the company’s recent success to growing uncertainty over interest rates and “turbulence in the wider financial markets,” which has driven savers to seek ways to maximize their returns while mitigating risk. He noted that despite the Bank of England’s recent decision to lower its base rate for the first time since March 2020, competition among banks to offer competitive, inflation-beating returns is expected to continue as mortgage affordability rises and demand for credit increases.
Flagstone’s growth trajectory is also reflected in its financial performance. The company recorded its sixth consecutive quarter of profitability at the end of June 2024, reinvesting profits into high-performance operations and expanding its partnerships with banks and brands. Merchant emphasized the importance of cash savings as a competitive and low-risk asset class, highlighting that Flagstone’s platform has made it easier for savers to access higher returns.
In March 2024, Flagstone secured £108 million from U.S. private equity firm Estancia Capital Partners, marking one of the largest UK fintech funding rounds of the year. This brings the total capital raised by the company to approximately £150 million, which will be used to support its ongoing expansion both in the UK and internationally.
The UK savings market, valued at £1.7 trillion, presents a significant opportunity for Flagstone, particularly as a large portion of these funds remains in low-interest accounts. Merchant noted that while traditional financial services often overlook cash as an asset class, Flagstone’s fintech innovation is helping savers recognize its potential as a high-return, low-risk component of their personal finance strategies.
