Record sales as now half of Crealogix’ cash comes from Banking-as-a-Service

Swiss fintech Crealogix turned a net profit of 1.1m Swiss Francs (£860,000) excluding amortisation and saw sales rise by five per cent during the year to June.

Revenues came in at 109m Swiss Francs (£85.3m), but more impressive is that 50 per cent of Crealogix’ sales are now recurring and linked to its Software-as-a-Service arm, an initiative that was only placed front and centre in 2019.

“We are consistently implementing our strategy of focusing on the SaaS model together with our customers,” said CEO Oliver Weber, adding that the fintech is convinced this recurring sales model “fully meets the steadily increasing requirements of banks, as it allows them to gradually replace their legacy banking software, while attracting new customers with innovative digital products.”

Crealogix has had several major customer wins over the last year, including seven German development banks which signed up to use its tech in the Summer of 2020.

Looking ahead, the business expects to see demand increasing over the next year, driven by the Covid-19 pandemic, and with margins further improving in the second half of the year.

Crealogix has had a challenging few years after its CFO and CEO both departed in 2019 and the business slumped to a loss as it introduced an ambitious plan to shift its business to a SaaS model.

Last year Weber cut 10 per cent of the group’s workforce as it battled both the impact of Covid as well as its ongoing restructuring.

Finally, towards the end of 2020 Crealogix started to show signs of recovering, with its sales starting to rise and after absorbing a one-off 7m Swiss Franc restructuring cost.