Castlefield Stock Story - Fintel

With the Great British Summer upon us, many people are booking holidays somewhere sunny. Before flying off, they might also be checking out travel insurance and looking for a policy with a good score from Defaqto, which describes itself as the UK’s most trusted source of financial product and market intelligence. [1]  

Defaqto is part of Fintel PLC; an AIM listed company based in Huddersfield. In this latest featured stock story Castlefield Investment Analyst David Gorman introduces Fintel- held in our TM Castlefield UK Smaller Companies Fund.

Fintel is an AIM listed company based in Huddersfield which serves the retail financial services industry. Through its sub-brands, Fintel acts as a bridge between financial advisers and intermediaries on one side and product providers such as asset managers, pension providers and investment platforms on the other.

Established in 2002 as SimplyBiz Group, Fintel was created to provide compliance, business and regulatory support to financial advisers and intermediaries, which was an important service in the increasingly heavily regulated UK financial advice market. Throughout the 2000s and 2010s, SimplyBiz[2] grew steadily and, over time, it bought other businesses, notably Defaqto in 2019 and the regulatory compliance adviser Threesixty Services Ltd. In 2024.

Fintel was created to provide compliance, business and regulatory support to financial advisers and intermediaries, which was an important service in the increasingly heavily regulated UK financial advice market.

In March 2021, reflecting its evolution, SimplyBiz rebranded as Fintel PLC. The new name, a blend of “financial” and “intelligence”, was designed to highlight the company’s ambition to be a digital connector within the retail financial services industry, making the flow of financial advice, product distribution and compliance more efficient through a combination of technology, data and regulatory expertise. The rebrand also unified multiple subsidiaries and services under a single identity.

These days Fintel operates two business units, a Software & Data division and a Services division.  The Software & Data division, which includes Defaqto, provides information on financial products as well as market data for financial advisers. Through its SimplyBiz network, the Services division provides technical and regulatory support, business consultancy, training and membership-based services to financial professionals. The Services division also acts as a distribution and engagement channel for Fintel’s data and software products, creating excellent cross-selling opportunities.

The company’s primary source of revenue comes from subscription and membership fees paid by financial advisers and firms who rely on Fintel’s compliance support, business guidance, training and technology. These recurring sales provide a stable foundation for the business. Fintel also generates income through software and data licensing, particularly via its Defaqto and Fintel IQ platforms, which provide financial product ratings, research tools and workflow software.

The company also earns distribution and partnership revenue from product providers who pay to access Fintel’s adviser network and for market insights that help them refine and distribute their offerings. Further income streams come from professional services such as compliance audits, training programmes and industry events. Customers include IFAs, mortgage brokers, banks, insurance companies and price comparison websites.

Fintel’s growth strategy revolves around three things: digital transformation, strategic acquisitions and ecosystem integration. Its competitive advantages stem from its trusted regulatory expertise, high proportion of recurring revenue and ownership of proprietary data assets like Defaqto’s ratings.

Fintel has won awards for its activities in sustainability, particularly around the social benefits of financial security and resilience as well as in supporting consumer choice.

Fintel has won awards for its activities in sustainability,[3] particularly around the social benefits of financial security and resilience as well as in supporting consumer choice. Through its subsidiary ThreeSixty, Fintel provides software tools to help advisor firms comply with regulations. Fintel also helps consumers make more informed choices with their money through its Defaqto and RSMR brands. Independent ratings from a trusted brand like Defaqto help consumers pick the right products for them, reducing the stress many people feel related to personal finances.

Fintel benefits from some favourable trends that position it for sustained growth. The most significant positive factor is the ever-increasing complexity of financial regulation, with frameworks such as the Financial Conduct Authority’s Consumer Duty rules continually raising compliance requirements for advisers and product providers. Another supporting trend is the ongoing digital transformation of financial services. The rising importance of data and financial intelligence also fuels growth and Defaqto is a market leader in this area.

We like Fintel because of its strong financial performance over recent years; revenue has grown steadily year-on-year and the company generates excellent cashflows to reinvest into the business and distribute to shareholders. Fintel also looks well-placed to make further progress in years to come.    

Written by David Gorman

Disclaimer

Information is correct as at 02.06.2026. Opinions constitute the fund manager’s judgement as of this date and are subject to change without warning. The officers, employees and agents of CIP may have positions in any securities mentioned herein. This material may not be distributed, published or reproduced in whole or in part. With investment, capital is at risk.