XTB has
spent nearly two decades building its position as one of the leading contracts for difference (CFD) brokers. In recent years, however, the company has been doing everything to
shed its CFD-only image, seeking clients in increasingly broader financial
circles.

Although
these three letters still account for 98% of the publicly listed company’s
revenue, CEO Omar Arnaout confirmed that the current ambition is to transform
XTB into an all-in-one financial super app.

In an exclusive conversation with Finance Magnates at the fintech’s Warsaw headquarters,
he also disclosed that the current profile of a retail investor looks entirely different from what it was 10 years ago.

80% of New Clients Choose
Non-CFD Products

Since 2023,
XTB has been introducing a series of product innovations, allowing its clients
to invest in fractional stocks and ETFs, use Investment Plans, conduct payments with a multi-currency card, and open retirement accounts
in a growing number of countries.

And while
XTB may still be associated with being a CFD broker, especially when looking at
financial reports, the company maintains that in many jurisdictions, there is
no longer an equation mark between XTB and CFDs. What’s more, currently, 4 out of 5 new customers are not interested in contracts for difference at all.

“Currently,
around 80% of our new clients make their first transaction in stocks and ETFs, which reflects a shift in customer intentions,” Arnaout revealed. He adds
that after a very active 2024, his fintech still has several aces up its
sleeve.

XTB’s office occupies three floors of the Skyliner skyscraper in Warsaw, where the company relocated in January 2022. The 4,000 square meters house offices, conference rooms, and social spaces, primarily used by IT staff, who now make up 50% of the fintech’s workforce.

Located near the bustling Daszyńskiego Roundabout, the skyscraper is surrounded by other high-rise buildings and major Polish and international financial companies. XTB is not the only tenant in the prominent building. Capital.com and MicroStrategy, known for its Bitcoin investments under Michael Saylor, also have offices here.

During my visit, I was accompanied by XTB’s PR manager as we toured the floors of their headquarters. Despite the holiday atmosphere and the hybrid model that allows employees to work remotely, the office was bustling. People were walking through the hallways and attending meetings, creating a lively and dynamic workplace environment.

After the office tour, we sat down at Arnaout’s office. “XTB has been evolving from a CFD broker to a ‘super
app’ or all-in-one financial application,” I started, “Where do you see the platform in the
future?”

“In five or ten years, I
believe XTB will largely remain consistent with its current direction,” Arnaut replied. “We plan
to introduce about five or six new products, which will solidify our position
as a comprehensive investment app.”

“Our goal isn’t to compete with banks but
to be the first choice for European clients managing their funds actively or
passively,” he continued. “After adding these products, our focus will shift to improving
platform usability and client experience.”

XTB has already started to enhance the UX (user experience design) of its app by implementing changes to
the home view—clients in the UK can already see those changes. “As we’re
transforming towards a universal investment super app, we see that some changes
are necessary to offer a seamless investment experience for all
investors, regardless of their experience and investment goals,” Arnaout added.

Your
2024 roadmap seems ambitious. What were you able to do?

“We managed to implement a lot of products.
We started by significantly improving investment plans, which our clients are
now actively using. We introduced a virtual
wallet with a multi-currency card in two
markets—Portugal and the Czech Republic—with more markets getting this
product in the first quarter of next year. We also introduced retirement
accounts in Poland and ISA in the
UK.

“We currently have about 5–6 new products
in our plan that we’d like to add. Once we add these additional products,
we’ll surely consider ourselves a super-app.

“Our
second business engine is marketing. During 2024 we introduced our new global brand ambassador—Zlatan
Ibrahimović—and started to reposition our brand towards the place where our clients’ money works for
them both actively and passively.”

Given
you would end future products’ implementation with success, would you say your
platform will evolve into a complete super app by the end of next year?

“I think we’ll be very close. Hopefully, we will be able to strengthen our product offering in 2025, and not many new products will remain in our current pipeline for further years. It’s important to mention that this is
obviously an evolving matter and our plans may always change to adhere to the
rising demands of clients worldwide.

“New products that we’ve launched in recent years are relatively low-margin. However, the
products planned for 2025 are quite the opposite. They may not reach as large
an audience but are expected to be significantly more profitable.

“Our goal is to diversify revenue and reduce
reliance on CFDs. Whether we reach 70% or 80% of non-CFD revenue in a year or
two depends on market interest in these new products.

“We’re open to exploring all types of
investment products. If something is popular in the market, or we can see that something is trending, it’s safe to assume that we’ve
either thought about it or are developing plans for it.”

And
what about bonds? Can you share why you decided to not implement them this
year?

“The decision came down to two main factors.
First, our plans for next year require significant resources, so we prioritized
products that provide the most value to clients and diversify our revenues.

“Second, we realized that bonds, given our
current competitive offerings, wouldn’t add substantial value for clients or
us. However, the groundwork has been laid, so the product can be introduced
later if needed.”

One
of the more notable introductions this year was also the presentation of ISA in
the UK. What are your plans and expectations for this market in the near
future?

“The UK branch is currently one of our
smallest, taking into account the
number of clients, but with the recent expansion of our product
offering, we believe we’re now better positioned for further growth. Over time, we aim to improve
our offerings further.

“What’s missing in the UK is a strong brand
presence. Now that we have a broader product range, it’s a matter of
solidifying our position. For next year’s budget, we’re focusing on increasing
marketing expenditures, not just in markets where we’re already leaders but
also in regions where we’ve struggled due to previous product limitations.

“The UK will be a priority market, with
significant marketing campaigns, including one for ISA, planned for the first
quarter of next year. While it’s challenging to estimate exact expectations for
ISA, our goal is to significantly increase new client acquisitions in the UK
and strengthen our brand.

“Competing with the market’s top five will
be a long-term process, but we’re confident that our efforts will yield
results.”

Speaking
of competitors, are you focusing on companies like IG, CMC Markets, or other UK
players in the CFD sector?

“If
we’re talking about companies similar to us, originating from the CFD space but
expanding their product offerings over the years, then yes, there are a few key
competitors.

“However, we’re not targeting the companies
you mentioned specifically, as their business models differ from ours. Instead,
we’re looking at players like Trading 212 that have established a strong
position in the UK market.”

Although
XTB speaks a lot about diversification, the majority of revenue still comes
from CFDs. Do you see this changing in the coming years?

“For the last 17 years, we’ve been a typical
CFD broker, so it’s expected that these instruments will continue to make up the bulk of our revenue.
However, the past few years have been a challenge as we’ve worked to reposition
our brand in the minds of both potential and existing clients. In markets like
Poland, the Czech Republic, Portugal, Romania, and Slovakia, we’re no longer
seen solely as a CFD broker.”

“It took us some time to reach our first
million clients, which we achieved in our twentieth year. This year alone, by
midyear, we onboarded around 230,000 new accounts.

“Our ambition is to significantly increase
this number next year. If we can onboard over a million clients annually, even
low-margin products like ETFs and investment plans will start making a notable
impact on our revenue. Currently, around 80% of our new clients
make their first transaction with stocks and ETFs, which reflects a shift in client intentions.”

Let’s
shift to the Polish market. You’ve recently introduced retirement
accounts, IKE. How has the reception been so far?

“The interest has been strong, but until now
there wasn’t a possibility to transfer IKE accounts in Poland, so these were
only new accounts.

“However, the ability to make the transfer was just introduced. In
fact, at the beginning of December, we
started a really big outdoor
marketing campaign in Poland—something we’ve never done before. I’m convinced
the interest will be enormous.

“We’ve enabled IKE
transfer gradually as the
process involves a lot of manual work. From a technology perspective, it’s not a simple automated task,
but we’re well prepared and
I hope we’ll have very interesting and active months ahead.”

Are
there plans to introduce IKZE accounts in Poland as well?

“Likely in the first half of next year. Our
technology team is already working on it. While I can’t promise exact dates,
our ambition is to have it ready as
soon as possible in 2025.”

Moving
to the broader European market, have you considered offering Pan-European
Personal Pension Product (PEPP)?

“Offering PEPP requires a separate license,
and while we haven’t shared our 2025 product plans yet, it’s something we’re definitely considering. The
range of investment products globally is relatively limited, so it’s a matter
of prioritization. Also, PEPP is definitely on our radar.”

You
mentioned that 80% of new clients are drawn to products outside of CFDs. Does
this suggest a shift in investor preferences towards simpler, less hands-on
investment solutions?

“That’s a good observation. Clients
interested in investment plans or ETFs are indeed very different from CFD
traders. However, equity clients tend to be more similar to CFD clients than
one might think.

“While they’re not as active, logging into
the app daily or frequently opening and closing trades, they are still drawn to
market volatility. Over time, we expect a substantial shift in
how clients interact with our platform compared to previous years. This isn’t
just a gradual change: it’s a dramatic transformation, happening almost
year by year.”

Looking
at your KPIs overall, what’s more important for you right now—revenue and
profit or acquiring the right number of clients each month?

“I would be lying if I said profit wasn’t
important to us. But I’ll be honest. Even when we present slightly worse
financial results to institutional investors, if we see that our client
acquisition was very high, clients are actively using our application and are
satisfied with it, and deposits were strong with significant increases in
trading volumes—personally, that’s more important to me than the financial
results. It builds a base
for a significant increase in profits over time. The end goal will always be reaching
the highest level of profits.”

“Results are partly a product of our actions
and improvements to our offering, and partly a result of market events. As a
company, we know we need to focus exactly on what we can control.

“If we can add a million clients annually,
better financial results will simply be a matter of time. So while I won’t say
results aren’t important, I’ll honestly admit that if I knew 10 million clients
were using our application, I’d be happier than having just one million with
very good financial results.”

Finally,
what’s your perspective on leveraging AI and internal technology development?
How does this impact XTB’s future?

“Investing in our technology has been one of the
best decisions in XTB’s history. It gives us flexibility and control over our
development. AI is already integrated into many internal processes, from client
support to technology development.

“While we currently focus on automation,
we’ll explore AI-driven analytical tools to support investors in the future. Automation is key to scaling
efficiently without proportionally increasing headcount.”

In the meantime, the company informed that Jan Byrski has resigned from his position as Chairman of the Supervisory Board. Finance Magnates asked for an additional comment on the matter and will update the article after receiving the response.