T
he boss of challenger financial institution Cashplus says to count on a wave of acquisitions within the house, together with conventional lenders shopping for their online-first rivals, and that his agency has already seen interest .
Digital-led banks have taken off within the UK in recent times, with the FCA issuing many extra banking licences to new challengers, creating a way more crowded house. CashPlus acquired its personal banking licence in 2021.
CashPlus CEO Rich Wagner informed the Standard that the variety of on-line banks may quickly come down because the sector begins to consolidate, and a few companies will probably be purchased out by their brick-and-mortar rivals.
“As we’ve seen the regulators opening up, you’re probably going to see some mergers and acquisitions over time,” Wagner stated. “Even larger players are looking at merges. So it’s not just the digital banks that are likely to be merged together but also some of the traditional banks.”
He added that his personal enterprise isn’t particularly seeking to be offered, however has famous curiosity from high-street banks.
“We’re not proactively doing anything but as the macro environment continues to move, but we’re not going to turn a blind eye to these type of opportunities,” Wagner stated. “We’ve seen traditional lenders with an interest in our transactional products.”
It comes as CashPlus reported a document £52 million in income, whereas profit after tax grew to £5.5 million.
Wagner stated: “I’m delighted with our performance for the year which saw us generate record revenues, grow in all core areas of the business and deliver a profit.
“These results underline the quality of our business and the ongoing demand for simple-to-use, easy-to-access banking products for the microbusinesses and consumers who are too often overlooked by the UK’s incumbent banks.”
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