Just under
three months after officially announcing its plans to enter the UK Individual
Savings Accounts (ISAs) market, XTB has joined the ranks of registered managers
authorized to offer this type of retail investment product, entering a market
valued at £400 billion.
Finance
Magnates learned
that the Polish-based publicly-listed fintech (WSE: XTB) plans to offer its
first ISA products in the UK by this autumn.
XTB Expands Beyond CFDs,
Enters New Market in the UK
During the
February earnings conference following the 2023 report, XTB CEO Omar Arnaout
revealed that after debuting its first offering for future pensioners in
Poland, XTB aims to enter the highly competitive market of tax-exempt
investment products.
The UK ISA
market serves 27 million people and holds £400 billion in stocks and share
savings accounts. British citizens can invest up to £20,000 annually through
their ISAs without tax obligations.
XTB, whose
main KPI is the continuous expansion of its customer base, decided to obtain a
license for this market, moving beyond its standard CFD offering. Initially
focusing on stocks and then passive investing through ETFs, XTB is now gearing
up for ISA offerings.
“As
part of our commitment to broadening our investment and savings product range,
I’m pleased to say our ISA licensing application has been approved by
HMRC,” Joshua Raymond, Managing Director at XTB UK, commented for Finance
Magnates in an e-mailed statement.
He revealed
that UK retail investors should expect the ISA offerings from XTB to be
available around the third quarter of this year. “We are aiming to launch
our ISA product to UK clients at the start of Autumn,” Raymond added.
XTB UK Builds Client Base
In 2023,
XTB increased its active client base to 312,000, and in 2024 it boasted of
surpassing one million users. This was possible partly due to significant
growth in the UK, where the number of active clients increased by 93% last
year.
Although
the scale of XTB UK’s operations is still modest compared to the entire
fintech, as the British branch generated a revenue of £4.7 million in 2023. However,
entry into the ISA market is expected to change this.
“The
UK ISA market has 12 million new subscriptions every year, constituting a
significant opportunity for the business. Our entry into ISA accounts would
mark yet another milestone for our products rollout in the UK, to complement
what is already a broad offering which includes ETFs, stocks, Investment Plans,
and CFD products,” concluded Raymond.
XTB’s
expansion is not limited to the UK alone. At the end of March, the company also
announced the acquisition of Indonesian broker Eagle Capital Futures, which is
set to “become a Gateway to Asia.”
This article was written by Damian Chmiel at www.financemagnates.com.
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