Fintech Neo hits profitability following year of rapid growth

Hand placing coins to demonstrate an increase in money.
Image licensed by

Cross-border payments and FX fintech Neo has announced that the firm is now profitable, following an increasing number of SMEs exploring alternatives to banks.

The Barcelona-based fintech has recorded an annual revenue in excess of €5m and an annual profit of €1m. It also saw volume double in just under a year, reaching over €7bn in 2023, which it says reflects a ‘growing demand from businesses for alternatives to traditional banks’.

It has recently been reported that 92% of SMEs are discussing virtual account solutions such as digital wallets, due to research that shows SMEs suffer from unfair pricing, slow execution and difficulties in reporting transactions, when working with traditional banks. 

Laurent Descout, Co-Founder and CEO of Neo, commented: “When we founded Neo, we knew that businesses were being underserved by treasury management software and banks which were holding back their international aspirations. 

“So, we built a solution using our own proprietary software which simplifies cross-border payments, FX and treasury, giving them everything they need to expand internationally, all in one place. Our solution comes with a top-class support team that helps clients on a daily basis and offers a level of service that banks have failed to provide for too long.” 

Features that the firm has developed to stand out include Neo’s multi-currency account, which businesses can use to send and receive payments in 25 different currencies. As well as Neo’s wallet architecture that allows firms to exchange currencies and organise their funds. 

Descout remarked: “Over the past year, we have experienced exponential growth across our customer base, volumes and revenues which is a testament to the product and team we have built. Turning Neo into a profitable fintech was our main objective for 2023 and achieving this just three years after the launch of our multi-currency accounts positions Neo as a sustainable business. 

“This helps us stand out against some VC-backed fintech players which have struggled with a lack of profitability. This is a very positive message for our shareholders, clients, supervisors and banking partners. Being financially independent will help us continue to grow our success and enhance our offering as we rebuild corporate finance from the ground up.”

Neo-banks have become a defining part of the modern financial services and payments infrastructure. However, some, such as Peter Korneu, CEO and Co-Founder of MyTU, believe that the sector needs to “deliver on the promise of reimagining banking’, as he explained to Payment Expert last year.