Fintech/News/

German digital bank Nuri files for insolvency

The seven-year-old fintech, which provides both fiat and crypto banking products, is working on a “long-term restructuring concept”

By Amy O'Brien

screengrab of Nuri's website' (c)Nuri

Berlin-based digital bank Nuri filed for insolvency today, two months after announcing layoffs as it struggled with the rout in cryptocurrency prices, economic uncertainty and a difficult funding environment. 

In a statement, the company said that despite the filing, customers would still have full access to their current accounts (euros) as well as their crypto wallets and vaults (bitcoin & ether) and can continue to withdraw funds. 

“For the time being, nothing will change and Nuri’s app, products and services will continue,” the statement said.

Deposits are protected by Nuri’s banking infrastructure provider, Solarisbank AG and its digital assets arm. 

“We are confident that the insolvency proceedings offer the best basis in the company’s current situation for developing a viable long-term restructuring concept,” CEO Kristina Walcker-Mayer said in a statement.

“We will do everything in our power to ensure our vision as well as our products and services continue to serve our current and future customers.”

The filing comes two months after Walcker-Mayer announced that the company was letting go of 20% of its workforce (about 45 employees) “to shift our strategic plans towards earlier profitability to adapt to the new reality in the financial markets”.

Nuri’s cap table includes European investors of the likes of Earlybird and DIP Capital.

Amy O’Brien is Sifted’s fintech reporter. She authors Sifted’s fintech newsletter and tweets from @Amy_EOBrien.