N26, the Berlin-based digital-only bank that has raised more than $670 million and gained 5 million users globally, announced Tuesday that it will leave the U.K. The company cited Brexit as the primary reason for the decision, saying it could no longer operate in the U.K. with its European banking license. 

All N26 accounts in the U.K. will be closed April 15,  the company said in a statement. Customers are being asked to transfer their deposits to alternative bank accounts after that date.  

While Brexit looms in the background, there are reports N26 was struggling to keep pace with competitors like Monzo, Revolut and Starling. Industry analysts wonder whether this has spurred the company’s departure from the U.K., a market it entered in October 2018. 

“N26 has struggled more in the U.K. than anywhere else because we have a diverse and mature market with the likes of Monzo and Starling, so there’s a lot more competition,” said David Brear, group CEO at London-based fintech consultancy 11:FS, in a statement. “Whether this move is actually about Brexit and them feeling they cannot build a sustainable business here, or whether it’s because of the highly competitive market — and they feel they can make a bigger impact, faster elsewhere — we’ll likely never know.” 

A recent report from financial publication Sifted concluded that N26 was struggling, compared with its competitors. Citing data from mobile analytics platform App Annie, Sifted reported N26 ranked 19th in monthly active users compared with other U.K. fintechs. PayPal and Google Play ranked first and second; meanwhile, Monzo ranked third, Revolut fifth and Starling ninth.  

See also: N26 crosses 250,000 US customers, grows product suite

According to Alistair Newton, research vice president and banking industry services director at Gartner, the ramifications of Brexit for the financial services industry remain unclear.  

“You could argue that any bank making decisions in advance of the finalization of those details will be making suboptimal decisions,” Newton said in an email. “However, from our client interactions, it’s clear that many banks have indeed decided to act in advance of that certainty, preferring instead to act early and accept the consequences, whether positive or negative.” 

N26 was founded in 2013, and launched in Europe in 2015. The company’s investors include Tencent and Peter Thiel’s Valar Ventures. It recently announced it has reached 250,000 customers in the U.S., where it launched in August 2019. 

According to Brear, the move from the U.K. could be a harbinger of things to come. 

“The concern about Brexit was whether we would start losing talented organizations trying to do interesting things on these shores,” Brear said. “We’re losing a really good fintech from the market.”

Bank Innovation Ignite, which will take place March 2-3 in Seattle, is a must-attend industry event for professionals overseeing financial technologies, product experiences and services. This is an exclusive, invitation-only event for executives eager to learn about the latest innovations. Request your invitation.