German fintech startup N26 is shutting down its functions in the U.K. Clients who opened a financial institution account in the U.K. will have to transfer their deposits, spend all the things with their card or withdraw money at an ATM, as all accounts will be quickly closed on April 15, 2020.
Several European fintech companies just take advantage of a European method named passporting. It lets you use for a license to function as a bank or a economical service in an EU member point out and then grow to all EU member states.
As you may well have guessed, N26has to exit from the U.K. banking industry simply because it currently has a European banking license through the central financial institution of Germany. Passporting is likely to improve following Brexit.
In unique, European providers that operate in the U.K. working with inward passporting have to abide by a new software method in buy to continue running in the U.K.
“The timings and framework outlined in the EU Withdrawal Settlement suggest that the corporation will in thanks study course be unable to function in the United kingdom with its European banking licence,” N26 writes in a statement. N26 consumers in other markets won’t be affected by this improve.
N26 also faces a ton of competition in the U.K. from Monzo, Starling and in some ways Revolut. It is also possible that N26 did not want to invest a large amount of time and revenue in buy to established up a appropriate subsidiary corporation in the U.K. with its own banking license.
You can no lengthier indication up in the U.K. If you’re an current shopper, everything will work ordinarily till April fifteen. You need to vacant your financial institution account, transfer your recurring payments to a different bank, determine all your subscriptions, immediate debits and deposits and go them to another financial institution.
On April fifteen, you won’t be in a position to obtain your account. Your card will be deactivated. Direct debits and deposits will bounce as effectively. If you have a quality subscription, N26 is heading to cease charging you for your N26 You or N26 Metal subscription from March 14.