Finseta making profits from managing currencies

Finseta, a multi-currency account provider for businesses and high net-worth individuals worldwide, has announced a successful year so far in 2024. The company, which was formed in 2010 and listed on Aim in 2021, has been expanding its operations and services.

In April 2024, Finseta received a significant boost when it sold its non-trading subsidiary Capital Currencies for £150,000 cash. This move marked a new chapter for the company, which changed its name to Finseta in the same month following the acquisition of Capital Currencies and Pangea FX in 2022.

Finseta's revenue has seen a remarkable growth since 2020. It more than doubled between 2021 and 2022, and then doubled again to reach £9.65 million in 2023. Despite a pre-tax loss of £5.6 million in 2022, the company declared its first pre-tax profit of £1.3 million and first positive cash flow in the same year. This strong financial performance has been sustained in 2024, with the company expecting continuing growth this year.

Finseta's success can be attributed to its low-risk business model. Unlike traditional banks, Finseta does not engage in speculative currency trades nor trade from its own balance sheet. Instead, it provides one-to-one personalized service, reduced paperwork, speed, and cost advantages over traditional banks. These factors, combined with its diversified business model that is not reliant on particular currency pairs or payment corridors, have made Finseta a popular choice for businesses and individuals worldwide.

Finseta offers accounts in at least 35 different currencies and serves over 1,400 customers in more than 150 countries. The company's highly scalable technology platform facilitates future growth and innovation. In January 2024, Finseta signed a deal with Mastercard to launch a corporate card scheme, which will allow the company to launch commercial cards co-branded with and supported by Mastercard for its corporate customers.

Finseta's international expansion began with the opening of a new Asia office in August 2021 and an office in the United Arab Emirates in September 2021. In April 2024, authorisation to operate in Canada was granted, further expanding Finseta's global reach.

The company invests heavily in its regulatory and compliance capabilities, which are crucial for its customers. Finseta's turnaround time for transactions is less than 24 hours, and its services are up to 5% cheaper than high-street banks' offerings. With its strong trading momentum, positive financial performance, and continued growth, Finseta is well-positioned for a bright future.

This article was first published in Finseta's website magazine.