Germany’s FinTech start-up N26 is closing its operations in the UK Customers who have opened a bank account in the UK will have to transfer their deposits, spend everything with their card or withdraw money at an ATM. All accounts will be automatically closed on April 15. , 2020.
Many European fintech companies benefit from a European process called passports. It can apply for a license to work as a bank or financial service in the EU member state and then expand to all EU member states.
As you may have guessed, N26 The American banking market had to go out because there is currently a European banking license through Germany’s central bank. The passport will change after the break.
In particular, European companies that operate in the United States using internal passports will have to process a new application form to continue working in the United States.
“The times and the framework set forth in the EU withdrawal agreement mean that the company will certainly not be able to operate in the UK with its European banking license,” N26 wrote in a statement. This change
The N26 also faces a ton of competition in the United States, with Monzo, Sterling and Rialto in some ways. It is also possible that N26 did not want to spend too much time and money to establish a proper subsidiary in the US through its banking license.
You can no longer sign up in the UK if you are an existing customer, everything will work normally by April 15th. You should clear your bank account, transfer your recurring payments to another bank, identify your subscriptions, direct debits and deposits. Transfer them to another bank.
On April 15, you won’t be able to access your account. Your card will be disabled. Direct debits and deposits will also bounce. If you have a premium subscription, N26 will stop charging you for your N26 you or N26 metal subscription starting March 14th.