Competition
in the UK’s retail trading market turned out to be too great for New York-based
investing platform Public.com, which suspended its local operations just eight
months after launching in the region. The situation was certainly not improved by the fact that Robinhood also recently entered the local market with its own brokerage services, increasing market saturation even further.
Public.com Shuts Down UK
Operations to Focus on US Growth
In an email
sent to Public’s UK users on Monday (yesterday) and seem by City A.M., the
company stated it will be “suspending operations in the UK” as of 3
May 2024. The correspondence clarified that all UK accounts will be closed
permanently after 30 April 2024.
When
reached for comment, a spokesperson for Public.com confirmed to City A.M. that
“with even more accelerated growth in the US, especially from recent
feature launches such as a five per cent high-yield account, corporate bonds
and options trading, we decided it’s better to focus on US business for
now.”
Breaking:
Robinhood rival Public. com is planning to shutter its UK business just eight months after launch, the firm has told its customers today. @CharlieConchie with the scoop 👇https://t.co/Gp5R9jujho
— City A.M. (@CityAM) February 26, 2024
The abrupt
about-face marks a dramatic reversal of fortune for Public.com’s UK operations.
The trading platform launched with much fanfare this past July, its first
expansion outside of its domestic US market. At the time, Public’s CEO Leif
Abraham touted London as “the financial epicentre of Europe” and a
“natural place for Public to start our international expansion.”
Just over
half a year later, that international ambition has been scrapped entirely as
Public looks to consolidate its resources stateside. It is unclear at this
point what the decision means for jobs at Public’s London office. The company
also operates offices in Amsterdam and Copenhagen, which appear to be
unaffected by this move.
The UK’s Retail Trading
Markets Seems Too Crowded
Industry
analysts suggest Public’s retreat reflects the fierce and crowded competition
in the UK’s retail investing space. The market was shaken up last November when the popular trading app Robinhood announced plans to launch in the region. With
Robinhood competing for market share alongside upstarts like Freetrade and more
established players like Hargreaves Lansdown and eToro, some experts questioned
whether the UK was big enough to support another new entrant.
“My
question is if the UK market is big enough for three new players,” fintech
analyst Simon Taylor commented for City A.M. late last year amid a flurry of
new companies entering the fray.
The UK has
also proven a difficult geography for trading apps to crack. Robinhood itself
delayed its UK launch multiple times over several years before finally debuting
last autumn. That launch came with the backing of the UK government, which has
sought to stimulate growth in the country’s fintech sector.
In the
meantime, Public.com says its domestic US business will continue unaffected by
the shutdown of UK operations. The company expects to channel investments into
improving new services for its American customer base going forward.
Competition
in the UK’s retail trading market turned out to be too great for New York-based
investing platform Public.com, which suspended its local operations just eight
months after launching in the region. The situation was certainly not improved by the fact that Robinhood also recently entered the local market with its own brokerage services, increasing market saturation even further.
Public.com Shuts Down UK
Operations to Focus on US Growth
In an email
sent to Public’s UK users on Monday (yesterday) and seem by City A.M., the
company stated it will be “suspending operations in the UK” as of 3
May 2024. The correspondence clarified that all UK accounts will be closed
permanently after 30 April 2024.
When
reached for comment, a spokesperson for Public.com confirmed to City A.M. that
“with even more accelerated growth in the US, especially from recent
feature launches such as a five per cent high-yield account, corporate bonds
and options trading, we decided it’s better to focus on US business for
now.”
Breaking:
Robinhood rival Public. com is planning to shutter its UK business just eight months after launch, the firm has told its customers today. @CharlieConchie with the scoop 👇https://t.co/Gp5R9jujho
— City A.M. (@CityAM) February 26, 2024
The abrupt
about-face marks a dramatic reversal of fortune for Public.com’s UK operations.
The trading platform launched with much fanfare this past July, its first
expansion outside of its domestic US market. At the time, Public’s CEO Leif
Abraham touted London as “the financial epicentre of Europe” and a
“natural place for Public to start our international expansion.”
Just over
half a year later, that international ambition has been scrapped entirely as
Public looks to consolidate its resources stateside. It is unclear at this
point what the decision means for jobs at Public’s London office. The company
also operates offices in Amsterdam and Copenhagen, which appear to be
unaffected by this move.
The UK’s Retail Trading
Markets Seems Too Crowded
Industry
analysts suggest Public’s retreat reflects the fierce and crowded competition
in the UK’s retail investing space. The market was shaken up last November when the popular trading app Robinhood announced plans to launch in the region. With
Robinhood competing for market share alongside upstarts like Freetrade and more
established players like Hargreaves Lansdown and eToro, some experts questioned
whether the UK was big enough to support another new entrant.
“My
question is if the UK market is big enough for three new players,” fintech
analyst Simon Taylor commented for City A.M. late last year amid a flurry of
new companies entering the fray.
The UK has
also proven a difficult geography for trading apps to crack. Robinhood itself
delayed its UK launch multiple times over several years before finally debuting
last autumn. That launch came with the backing of the UK government, which has
sought to stimulate growth in the country’s fintech sector.
In the
meantime, Public.com says its domestic US business will continue unaffected by
the shutdown of UK operations. The company expects to channel investments into
improving new services for its American customer base going forward.
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- Source: https://www.financemagnates.com//forex/us-publiccom-throws-in-the-towel-in-battle-for-the-uk-traders/
