Neo, a cross-border payments and FX FinTech, has announced that the firm is now profitable as an increasing number of SMEs explore alternatives to banks for managing their international business needs.
The Barcelona-based FinTech which provides a one-stop-shop multi-currency account for corporate treasurers recorded an annual revenue in excess of €5 million and an annual profit of €1 million. It also saw cleared volume double in just under a year, reaching over €7 billion in 2023 alone, reflecting growing demand from businesses for alternatives to traditional banks.
Research shows that when working with traditional banks, SMEs with international operations suffer from unfair pricing, slow execution and difficulties in reporting transactions. As a result, 92% of SMEs are having conversations about virtual account solutions such as digital wallets to help solve these problems.
There has also been an increased bank diversification drive since the banking crisis which highlighted the risks of relying on one or two banking partners.
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