Finnish FinTech firm Holvi is pulling out of the UK after six months due to “challenging” conditions created by COVID-19 and Brexit uncertainty.

The BBVA-owned company, which offers business banking services for small businesses and sole traders, said UK accounts will expire on 31 October, with customers advised to transfer balances to an alternative account by that date.

The company, which was founded in 2011, has garnered more than 200,000 customers across Finland, Germany and other Eurozone countries and launched in the UK in January.

However, in a blog posted explaining its decision to leave the UK, the company stated: “The UK is a challenging market - and at the beginning of the year we were ready to meet this challenge head on - but the world has changed a lot in 2020, and with change come shifting priorities.

“Coronavirus has disrupted market conditions and added a new layer of complexity, when you factor in the UK's uncertain regulatory landscape, the waters become even less clear.”

The company said that the decision to pull back entry into the UK market would enable its to focus on its core business in Europe.

The statement added: “We’ve made this decision at an early stage of our expansion to help minimise the impact on our customers and partners. This means we’re leaving the UK before we’ve even had a chance to get off the ground - but sometimes you need to take a step back in order to take two steps forward.”

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