Pensionbee, a London-based fintech firm, is embarking on a strategic expansion into the US market, supported by a £20m funding boost, as it targets the substantial US defined contribution pension market.
- The company reported a 41% increase in assets under administration, reaching £5.5bn by the end of September.
- Pensionbee’s revenue for the third quarter surged to £9m, with positive adjusted EBITDA reported for the second consecutive quarter.
- The firm aims to capture a significant share of the UK’s pensions market while expanding its presence in the US.
- Chief executive Romi Savova highlights the transformative potential of this expansion for Pensionbee’s growth over the next decade.
Pensionbee, a prominent player in the online retirement savings industry, is significantly advancing its US ambitions with the help of a £20m financial injection. This strategic move marks a pivotal point as the firm seeks to penetrate the vast US defined contribution pension market, valued at approximately $22.5 trillion.
The firm’s recent financial performance corroborates its growth trajectory. Reporting a 41 percent rise in assets under administration, Pensionbee’s AuA now stands at £5.5 billion as of the end of September. This growth is propelled by an increase in customer numbers, reaching 260,000 by the third quarter, with net inflows from new and existing customers contributing substantially to the total.
Notably, the company’s revenue climbed to £9 million, reflecting a robust performance compared to the £6 million generated in the same quarter of the previous year. Moreover, Pensionbee achieved a milestone with its second consecutive quarter of positive adjusted EBITDA, a feat that underscores its improving financial health and operational efficiency.
On the strategic front, Pensionbee envisions capturing two percent of the UK’s £1.2 trillion pensions market over a five to ten-year span. This ambitious target aligns with the firm’s recent capital raise for its nascent US operations, which were launched in partnership with State Street’s investment management division in July.
Romi Savova, the dynamic chief executive of Pensionbee, remains optimistic about the company’s future, particularly with the expansion into the US. “We are pleased to see a positive consumer response to our marketing approach and to have developed local features to facilitate easier rollovers,” she stated. This expansion is set to position Pensionbee alongside its UK counterpart, aiming to build US defined contribution assets to rival its established UK operations.
Pensionbee’s strategic expansions, bolstered by strong financial performance and substantial funding, underscore its commitment to scaling its presence both in the UK and the US.
