German fintech startup N26 will pull out of the UK market utterly, because it says its European banking license received’t allow operation there following Brexit.
UK-based clients of the Berlin-based firm had been informed at present their accounts would shut by April 15th, Reuters stories.
N26 has operated within the UK for simply 5 months, some two years after the general public voted to go away the European Union within the first place.
In truth, its CEO Valentin Stalf informed CNBC in October that launching within the UK was “a no brainer for us, impartial of Brexit.”
N26 hosts roughly 200,000 British accounts, whose homeowners are prone to be pushed in direction of digital banking alternate options like Monzo and Revolut.
N26 not even in prime 10 ‘challenger banks’ within the UK
It didn’t take lengthy for rivals to poke enjoyable at N26. Dutch startup Bunq posted a weblog providing its skepticism over whether or not regulatory issues really motivated N26’s sudden post-Brexit bailing.
Definitely, N26 is profitable in different markets. It reportedly boasts 4.5 million customers globally, nevertheless it by no means actually discovered a strong foothold within the oversaturated British market.
Certainly, information printed by Sifted in December revealed N26 ranked 19th within the checklist of prime British fintechs, sorted by month-to-month lively customers. Cryptocurrency trade Coinbase had extra customers.
As for Revolut and Monzo, they already service greater than 1 British million clients, as does Starling Financial institution. So, as an alternative of continuous to battle to poach customers, N26 is predicted to give attention to rising its presence within the US market.
The Peter-Thiel backed startup has serviced clients throughout the US since mid-2019. Final month, N26 claimed it had attracted 250,000 American customers, together with some who’d moved over from huge names like Chase and Citibank — nevertheless it want masses extra if it’s going to thrive there, too.
Revealed February 11, 2020 — 17:52 UTC