Flagstone Posts Record Revenues and Profits as Savers Embrace the Value of Cash
By Lauren Hinton · 25 February 2025
Flagstone, the UK’s leading savings platform (1), has recorded a second year of profits after a year in which annual revenue grew by 46%. At the same time, Flagstone customers generated cumulative returns of more than £500 million on their savings in 2024 through the platform.
Early accounts for the year ending 31 December 2024 show that in 2024 Flagstone generated £55 million in revenue (up from £37 million in FY2023). In the same period, Flagstone grew its Group Assets under Administration (AUA) from £10.9 billion to £16.2 billion, having consistently increased AUA by more than £1 billion per quarter since January 2023.
2024 was Flagstone’s second fully profitable year. The 11-year old company recorded its first profitable quarter in late 2022.
Flagstone’s strong performance is predicated on four key drivers:
- Growing demand for competitive, risk-adjusted returns among consumers and businesses
During 2024, Flagstone reported record high inflows of new funds from savers for every quarter. Across the year, the number of users of its customer-facing platform grew by 55%. Positive consideration of Flagstone by consumers rose by 30% in the year in a market where overall consideration of all savings platform providers rose by 14%. (2)
- Equally high demand from banks and financial services institutions to join Flagstone panel
Flagstone continues to be the largest savings platform in the UK, based on the number of banks on its panel and savings accounts on offer. In the year, the number of banks offering savings accounts on Flagstone increased by 10% to 66 and the number of savings accounts available to Flagstone customers now stands at more than 220. During the year Flagstone’s bank partners benefited from an enhanced data portal that provides custom and immediate oversight of how Flagstone savers are engaging with the banks’ savings products at any single point in time.
- Consistently competitive rates amid a falling interest rate environment
As of the end of January 2025, 95% of rates available to savers on the Flagstone platform exceeded the market average (2.1%). As of today, 88% of Flagstone’s available accounts offer returns above the current inflation rate of 3%, while over a third provide returns of 4% AER or more - significantly higher than the market average.
- Fintech advancements to create a first-class customer experience
The average UK saver has two to five savings accounts with multiple banks (3), each with their own onboarding processes, logins and administration requirements. Flagstone’s customer platform puts visibility and simplicity first to transform, through fintech innovation, the savings process into a streamlined and intuitive journey in one single location.
During 2024, Flagstone redeveloped its KYC (Know Your Customer) protocol, speeding up the onboarding process to remove churn and improve the customer experience.
In addition to growing users of its customer-facing platform by 55% in the year, Flagstone extended its lead through the year as preferred technology partner to more UK financial services institutions that wish to offer competitive, easy-to-use savings opportunities to their own personal and business customers. The company also made improvements to how banking partners integrate their savings accounts onto the platform, reducing time and effort and passing on greater benefits to customers as a result.
Simon Merchant, Co-Founder & CEO of Flagstone, comments: “In 2024 managing your money required careful navigation of stubborn inflation, fluctuating interest rates and significant tax hikes on almost every type of investment. People had to get creative, reevaluating their financial goals and taking proactive steps to make their money work harder.
“Tax hikes on investing and inheritance, coupled with rumours of more tax raids on pensions are heavily influencing savers’ decisions now. One in three Flagstone savers plans to reduce future investments due to capital gains increases (4). At the same time, they are saving more than ever, diversifying their savings across an average four accounts to minimise effort, reduce risk and earn competitive, risk-adjusted returns.
“Saving is, increasingly, the commonsense answer. Our strong performance through the year proves that - as do the consistently competitive rates on offer throughout the whole of the savings market.”
According to the latest FCA data, the UK savings market is worth £1.5 trillion (5), but Bank of England stats suggest that two thirds of this cash is held in accounts earning 2% or less in interest per annum (6). A quarter (£250 billion) of these savings are in 0% accounts (7).
Merchant adds: “2024 was a record year for Flagstone on many metrics, but we’ve a long way to go yet. As a fintech leader in a very traditional market, we have a huge opportunity to introduce customers to a satisfying savings experience. But as ‘inertia’ lifts and savers take action, Flagstone is equally well positioned to be a trusted fintech partner to many more financial brands for whom savings is now a must-have in the suite of products they offer.”
In March 2024, Flagstone announced a £108 million ($138 million) equity investment from Estancia Capital Partners - one of the largest UK fintech investments of the year (8). In the next year, the Flagstone team is poised to pass a number of significant milestones on its long-term product roadmap including automating more of an individual customer's savings process to maximise interest accrual. Companies in this story: Flagstone
People in this story: Simon Merchant