Moneycorp's CEO Velizar Tarashev Discusses 2024 US Banking Outcomes Plan
In a significant move, Moneycorp, a leading player in the cross-border payments space, has secured a conditional US bank charter from the State of Connecticut. This charter marks a foundational step in Moneycorp's strategy for growth in the US payments market.
The UK-based financial services company, which aims to position itself as a bridge between traditional global banks and agile fintech players, plans to launch a new US bank in Connecticut. This decision underscores its commitment to establishing a strong presence in the US market.
Moneycorp has announced its intention to occupy office space at 400 Atlantic St., in Stamford, Connecticut. This physical expansion will provide a strategic location for operations, supporting its growth ambitions.
In addition to its geographical expansion, Moneycorp has been granted an innovation bank charter by the Connecticut Department of Banking. This charter offers a regulatory framework that supports fintech operations, allowing Moneycorp to innovate and offer banking services without accepting retail deposits.
Moneycorp specializes in international money transfer and online foreign exchange services, focusing on providing competitive solutions for cross-border payments. This specialization has contributed to its revenue growth in 2024, which saw a 13% increase to £79bn in trading volumes. The company also reported a £231.3m group revenue for 2024, up from £220.8m in 2023.
EBITDA for Moneycorp in 2024 rose 5% YoY to £80.4m, giving a margin of 35%. This growth is a testament to the company's profitability in a competitive market.
Moneycorp's strategy for growth also includes enhancing its sales capabilities. The company is seeking to hire Account Executives, who focus on identifying FX risk and international payment needs for corporate clients. This strategic hiring boosts its sales cycle management and customer relations in the cross-border payments space.
Moneycorp now serves over 32,000 clients across 100 countries, and its Financial Institutions Group (FIG) showed particularly strong momentum in 2024. The company's continued investment in scalable cloud-based infrastructure totals £90m over the past decade, demonstrating its commitment to providing efficient and reliable services.
For further details about Moneycorp's performance, US banking strategy, and profitability in the cross-border payments space, readers are invited to consult an industry-leading newsletter.
Moneycorp, with its focus on expanding in the US market, plans to utilize the office space at 400 Atlantic St., in Stamford, Connecticut for its new US bank. This move, coupled with the innovation bank charter received, will enable the company to offer banking services that support fintech operations and further its growth in the business sector, specifically investing in international money transfer and cross-border payments.
