0 £0.00
This item was added to your basket
Credit Strategy homepage

Dear visitor,
You are viewing 1 of your 1 free articles

We’ve invested in our content to provide more news, analysis, features, interviews and opinions across a wide range of Credit and Financial Services. Register now to access more of the trustworthy, insightful information that’s on offer.

Register now or Login

Morses Club acquires U Holdings

Doorstep lender Morses Club has acquired digital current account provider U Holdings through its fully owned subsidiary Shelby Finance Limited.

Share on LinkedInShare on TwittereCard

Morses Club said the move was “an important step in building a digital offering” to allow its customers to “access credit flexibly”.


There is an initial cash consideration of £5.8m, financed from existing Morses Club cash and debt facilities, and a deferred £5m, payable in cash over the next four years to February 2023, conditional upon certain net profit criteria having been met.


As part of the transaction, Morses Club has acquired U Holdings’ technology and e-money banking platform, as well as its 20,000 current active customers. U Holdings trades as U Account.


Based in Sheffield, U Account provides an agency banking service. As well as providing card services with its current accounts through contactless Mastercard debit cards, U Account also offers in-app features and functionality to “help customers manage their finances more effectively”.


U Account focuses on customers who are “underserved by traditional banks”, offering a current account banking service that allows customers to receive wages or benefits directly, manage their outgoings, and avoid unnecessary bank charges. U Account customers can also deposit cash at one of PayPoint’s 28,000 terminals across the UK and earn rewards from recognised retailers.

U Account has historically been loss-making.


In the year ended February 28, 2019, U Account (then trading under the ownership of Ffrees Family Finance Ltd) generated unaudited revenue of £1.7m and an unaudited operating loss of £4m. However, management expect that post-integration and restructuring, the losses incurred in the remainder of the year will be in the range of £1.4m to £1.7m. They added they are confident that “the acquisition will be earnings accretive thereafter”.


Paul Smith, chief executive of Morses Club, said: "This acquisition represents a fantastic opportunity to enter the rapidly growing online banking market. U Account features the full suite of digital banking services and has grown its customer base to circa 20,000 active customers. U Account’s offering is highly complementary to that of Morses Club, and through this acquisition we expect to deliver significant synergies and cross-selling opportunities.


"This is another exciting step for Morses Club as, consistent with our stated strategy, we continue to diversify our product offering to serve a broader range of customers across the non-standard credit space. Our differentiated use of technology and innovation enables Morses Club’s customers to access a broader range of more flexible and suitable credit."

Share on LinkedInShare on TwittereCard
Add New Comment
You must be logged in to comment. Login or Register to access enhanced features of the website.


Upcoming events

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group