Soldo, a fintech startup based in London offers business a multi-user spending account. It has an Electronic Money Institution license from Ireland’s Central Bank. With this license, it is claimed that the company can mitigate the uncertainty around Brexit.
The fintech startup backed by Accel is licensed by FCA, the U.K. financial regulator, a European Union regulation, which lets a company get regulated in one country in EU and offer financial service across all the countries in the EU and EAA. Basically, this startup benefits from the concept of passporting.
Post-Brexit, this arrangement might come to an end leaving Soldo unable to offer its services across Europe, which is touted to represent 50% of its business.
A new team in Ireland
Soldo says that it will make sure it is prepared to face whatever be the outcome of Brexit. The company is planning to mitigate to Ireland to serve its EU customers along with a team from its E-Money Institution to support them.
Regarding Irish team, the founder and CEO of Soldo, Carlo Gualandri said that after March, the company will manage all its financial services activities related to the EU customers from Ireland. The new team will have around 10 people including relocations and new hires.
New challenges to face
Though the London fintech startup has passed the necessary checks to acquire an Irish license, there are other uncertainties due to Brexit that might affect its business. These include issues related to data transfer and processing, freedom of movement, taxation and ability to hire talent from abroad.
Commenting on this, Soldo states, “The E-Money licence enables Soldo to operate its services smoothly during a time of unprecedented turbulence in the business and political sphere and demonstrates the company’s commitment to providing uninterrupted enterprise level financial technology services for businesses of all sizes. With the licence, the company will be able to issue payments in Ireland across the European Union under passporting rights.”
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