Banking Tech Startup 10x Sees 7% Reduction in Annual Losses to £55M Following Executive Departure

The UK-based banking technology startup 10x, which was founded by former Barclays CEO Antony Jenkins, has reported a notable improvement in its financial performance for 2023. The company's annual losses decreased by seven percent, totaling £55.1 million, down from £59.6 million the previous year. This reduction in losses marks a significant step toward financial stability for the company, which has been navigating a challenging economic landscape.

10x, established in 2016, has carved out a niche in the financial technology sector by offering cutting-edge, modular banking software designed to disrupt traditional banking models. The company’s software is aimed at providing banks and financial institutions with agile, cost-effective solutions that enhance operational efficiency and speed. Among its notable clients are JP Morgan, whose UK digital bank Chase runs on 10x’s technology; Westpac, a major Australian bank; and Old Mutual, a prominent financial group with a strong presence in Africa.

The startup’s financial trajectory has been supported by recent funding activities. Earlier this year, 10x completed a £35 million funding round led by existing investors BlackRock and JP Morgan. This funding round is significant as it represents the company's first major investment since 2021, when 10x was valued at approximately £600 million. The £35 million was secured through an unsecured convertible loan note, with £15 million of the funds drawn down by December 2023. The funding is intended to support the company's operations and drive it towards achieving break-even and positive cash flow by 2025. As of the end of 2023, 10x reported holding £16.1 million in cash reserves.

Despite the positive financial developments, 10x has faced challenges in its leadership. The company's Chief Operating Officer, Curt Hess, left the business in June 2023. Hess, who previously held the role of CEO of Barclays' US customer business, has transitioned to a new position as US Executive President at Vitesse PSP Limited, a payments firm. His departure comes at a time when the company is undergoing significant changes and efforts to stabilize its operations.

Additionally, 10x has seen a reduction in its workforce, with headcount decreasing from 401 to 327 employees over the past year. This reduction reflects broader strategic adjustments within the company. During the same period, the highest-paid director, presumably Antony Jenkins, received compensation amounting to £500,000. Despite these operational changes, 10x’s turnover remained relatively steady at £21.8 million, indicating a stable revenue stream.

Overall, 10x's recent performance and strategic moves highlight its ongoing efforts to innovate and expand within the financial technology sector, positioning itself as a key player in the evolving banking landscape. The company’s focus on modular, flexible banking solutions continues to attract interest from major financial institutions and investors alike, as it works toward achieving its long-term financial and operational goals.