U.K. fintech firms Curve and Modulr recently established new European outposts to ensure they can continue operating in the EU after Brexit.
LONDON — Financial technology start-ups in the U.K. are quietly rushing to get Brexit contingency plans in place as the prospect of crashing out of the European Union without a trade deal looks increasingly likely. Curve, an app that lets users link their bank cards to one spending card, says it set up a new entity in Lithuania and won regulatory approval in the country. Nathalie Oestmann, Curve's chief operating officer told CNBC this move was intended to "ensure we could continue to serve the 50% of our customers who are European after Brexit."
Revolut, one of Britain's most-valuable fintech firms, is seeking an e-money license with Ireland's central bank in addition to a backup license in Lithuania, which it secured in 2018. It's not clear whether the banking app will manage to obtain its Irish authorization by the end of the year. A spokesperson for the company told CNBC this process was still "ongoing."
Many lenders had already warned back in 2017 that they would have to take drastic measures to avoid uncertainty associated with the U.K.'s withdrawal from the EU. The likes of JPMorgan and HSBC, for example, threatened to moveBut the moves from some fintech firms appear to contrast with that of the big banks.
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