Holvi, the BBVA-backed fintech offering banking accounts for sole traders and small businesses, is pulling out of the UK just six months after launch.
Citing Brexit and Covid complications, the Finnish fintech says all Holvi accounts in the UK will expire on 31 October 2020.
"The UK is a challenging market - and at the beginning of the year we were ready to meet this challenge head on," says the firm in a statement. "But the world has changed a lot in 2020, and with change come shifting priorities. Coronavirus has disrupted market conditions and added a new layer of complexity. When you factor in the UK's uncertain regulatory landscape, the waters become even less clear."
While the Coronavirus pandemic disrupts business as usual, the prospect of facing a no-deal Brexit - and the added burden of getting a UK banking licence - forced the issue to the fore as Holvi weighed its options.
States the company: "As we focus on honing Holvi’s features and better serving our customers, we’re concentrating on expanding our leading position in Germany, Finland and European markets outside the UK."
Holvi follows digital bank N26, which also pulled out of the UK market in response to Brexit-related licencing issues and challenging market conditions.