Finland-based challenger bank Holvi has decided to pull out of the UK market due to the disruptions brought about by the no-deal Brexit and Covid-19 pandemic.
In a blog post, the BBVA-owned fintech startup said that it will officially exit the UK market by October this year.
The move comes just six months after its launch in the UK market.
The challenger bank intends to shift its focus on bolstering its core business in Europe – its home market – by launching new products.
Holvi said: “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.
“To respond to these new circumstances, we have made the difficult choice to strengthen our core business in Europe and invest more time and money in product growth.
“This shift in focus, unfortunately, means pulling back on our entry into the UK.”
“We have made this decision at an early stage of our expansion to help minimize the impact on our customers and partners.”
Holvi noted that all accounts will continue to operate until 31 October 2020.
The Holvi Business Prepaid Mastercard will stop working on 15 October, and all Holvi accounts will be officially closed on 31 October.
The fintech firm has asked its UK customers to transfer their account balances to an alternative bank account before the said dates.
Earlier this year, Germany-based challenger bank N26 also bailed out of the UK citing Brexit as the reason.