Neobank Nuri files for insolvency

Due to “significant macroeconomic headwinds and the cooling down of public and private capital markets,” which has had a negative impact on the firm’s liquidity, the German neobank Nuri has filed for insolvency.

According to the bank, filing for insolvency was “necessary to ensure the safest path forward for all our customers” and cites the impact of “challenging market developments” on Nuri’s business.

Neobank, a company with headquarters in Berlin, stated in a statement posted on its website that the action has no impact on its services, client funds, or assets.

Thanks to Nuri’s cooperation with Solarisbank AG, all monies in clients’ Nuri accounts are secure. They will always have unrestricted access to all monies and be able to freely deposit and withdraw them whenever they like.

The company let go of 45 staff in May. CEO Kristina Walcker-Mayer cited “massive” drops in tech and fintech valuations, a change in US interest rates, and a spike in inflation as the causes of the layoffs. According to Nuri, the year 2022 has been difficult for the overall startup ecosystem, “especially for fintechs.”

The Covid-19 pandemic’s repercussions, Russia’s invasion of Ukraine, the slowdown in public and private financial markets, and unfavourable developments in the world of cryptocurrencies like Celsius’s bankruptcy have all put pressure on the company’s liquidity.

The neobank however states that it is confident that the temporary insolvency proceedings offer the best basis for formulating a workable long-term restructuring concept.