Holvi withdraws from the UK market, citing market uncertainty and Brexit

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Digital banking service provider for the self-employed, Holvi announced that it is withdrawing from the UK on 31st October 2020. The FinTech cited the changing market conditions triggered by Brexit along with the uncertainty of the regulatory landscape in the UK. Holvi stated that this development will only affect its UK customers and will have no impact on other markets as it continues to strengthen its position across Europe.

Holvi’s CEO, Antti-Jussi Suominen, said, “The UK has always been a challenging market, and we were prepared to take up this challenge. However, the speed at which market conditions are changing has accelerated. To respond to these new circumstances, we’ve made the choice to strengthen our core business in Europe and invest more time and money in growing our product. This shift in focus, unfortunately, means pulling back on our entry into the UK.”

The Helsinki-based FinTech stated that until 30th October, all accounts would continue to operate as usual, and UK customers should transfer any balances to an alternative bank account by that date. Holvi also expects to introduce new products, including an accounting service and the integration of virtual payment cards.

Suominen added, “We have made this decision at an early stage of our expansion in order to help minimise the impact on our customers and partners. Even if this means leaving the UK before we have really got off the ground. We will now focus all our efforts on further growth in our core markets in Europe and on extending our leading position in Germany and Finland.”