Scred

About Scred

Various small European fintech companies have failed despite high valuations. The pattern is similar to US startup failures. European fintechs face challenges including regulatory fragmentation across the EU, difficulty scaling across borders, and competition from established banks. Wirecard was the most spectacular European fintech failure. The Finnish fintech sector has been more cautious, with fewer failures. Revolut, Monzo, and N26 have all faced challenges but survived. Monzo raised emergency funding in 2020 during COVID but recovered. N26 has struggled with regulatory issues in Germany. The European neobank model has proven difficult to make profitable despite large user bases. Most neobanks lose money on each customer due to low account balances and high customer acquisition costs.