Fears for fintech sector after Wirecard's UK entity is suspended
Similarly, Nigel Verdon, founder of open banking platform Railsbank, told Sifted: “This is the Enron for the fintech industry.
“This is exceptionally bad… It’s a massive blow for consumer UK fintech,” said Michael Kent, founder of remittances provider Azimo.
“There is total disbelief with the FCA [the UK regulator] for freezing funds on a Friday, especially the last Friday of the month,” said one trade-body member, who asked not to be named.
One possible theory is that the FCA feared ‘flight of consumer funds’ at the hands of Wirecard’s German liquidators.
These so-called “fintech enablers” have been a key part of the sector’s growth by allowing consumer fintechs to focus on user experience and features rather than core technology.
Disclaimer: This story is auto-aggregated & summarized by a computer program and has not been created by StartupAround.
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