Economy

N26 to cancel all United Kingdom accounts as Brexit effect takes its toll

N26 to cancel all United Kingdom accounts as Brexit effect takes its toll”

Customers who opened a bank account in the United Kingdom must transfer their deposits, spend everything with their card or withdraw money at an ATM, as all accounts will be closed automatically on April 15.

A spokesperson said the bank had "several hundred thousand" United Kingdom customers.

N26 is the first bank to announce it is withdrawing from the United Kingdom due to Brexit.

Until April 15, accounts and the app will work as normal, including all card payments and direct debits.

N26 said on Twitter on Tuesday afternoon: "With the United Kingdom having left the European Union, we will in due course be unable to operate in the United Kingdom with our European Union banking licence, so we will be leaving the United Kingdom and closing all accounts".

The neobank reasons that applying for a United Kingdom banking licence would require "complex regulatory measures" as well as "significant operational processes and costs".

N26 mounted an eye-catching marketing campaign on the London Underground previous year as it pushed to acquire customers.

Following the closure of the company's United Kingdom operations, the majority of N26's United Kingdom staff will move into new roles within the business as the mobile bank continues to grow its global team, the company said.

N26 also faces a ton of competition in the United Kingdom of Monzo, Starling and somehow Revolut.

Sarah Kocianski, head of research at consultancy 11:FS, told Yahoo Finance UK that N26's exit was "not a surprise" in the industry. Launched in 2013, it has expanded across Europe rapidly and now has over 5m customers across 26 countries.

"We had some great footfall on the day and there was a lot of excitement at the time [of launch]", N26's strategy and operations manager at the time Myles Tullo said in December 2018 shortly after the campaign.

As you might have figured, N26 must depart in the United Kingdom banking marketplace since it now has a European banks permit during the central bank of Germany.

A large part of N26's recent customer acquisition has come in the USA, where it has now gathered a quarter of a million users since its launch in the overseas market last summer. "We've planned the next steps carefully to ensure this process is as smooth as possible for every customer in the United Kingdom". The company said most would be re-deployed to other projects within the business.

Thomas Grosse, Chief Banking Officer at N26 said: "While we fully respect the decision that has been taken, it means that N26 will in due course be unable to serve our customers in the United Kingdom and will have to leave the market".



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