Holvi began a new chapter earlier this year after company founder Tuomas Toivonen purchased the startup back from BBVA in February.
Holvi, which provides banking tools for self-employed entreprenuers, was founded in 2011 and debuted on the Finovate stage in 2012. In 2018 the company sold to BBVA, which later launched Holvi’s banking services in the U.K. Nine months after the U.K. launch, the Spanish bank decided to pull out of the region, citing concerns over Brexit.
Sifted reported this week that after Toivonen purchased Holvi from BBVA earlier this year, the startup lost 60% of its customers and saw its staff drop by 50% from 150 employees to just 75. Now, it is more profitable than ever. The company increased monthly revenues by 40% by charging a monthly fee of $7 to $14 for an account.
The reason for the recent success hinges on Holvi’s newfound dexterity as a smaller company. As Toivonen told Sifted, “When you’re an independent company, you of course have more flexibility. And when you’re team-owned and run there is no inertia in decision making. You can make big decisions fast.”
What will those “big decisions” look like in Holvi’s future?
The company tells Sifted it plans to launch a credit card offering to complement its current debit card product. Holvi also disclosed it will launch a receivables financing tool to help entrepreneurs smooth out cash flow when they receive invoice payments late.
Holvi, which was founded in Helsinki, Finland and operates in Germany, Finland, and Austria, doesn’t plan to enter new geographies at the moment. The company may, however, consider re-entry into the U.K. market.
The renewed focus will likely prove successful for Holvi. When the company first launched in 2011, neobanking was a relatively new concept, especially in the commercial banking space. In today’s environment, however, digital neobanks are commonplace. Not only are consumers accustomed to opening a new bank account with a digital-only bank, regulators are also more comfortable with how they operate.
Photo by Jake Hills on Unsplash
Holvi started a brand new chapter earlier this 12 months after firm founder Tuomas Toivonen bought the startup again from BBVA in February.
Holvi, which offers banking instruments for self-employed entreprenuers, was based in 2011 and debuted on the Finovate stage in 2012. In 2018 the corporate bought to BBVA, which later launched Holvi’s banking providers within the U.Okay. 9 months after the U.Okay. launch, the Spanish financial institution determined to tug out of the area, citing considerations over Brexit.
Sifted reported this week that after Toivonen bought Holvi from BBVA earlier this 12 months, the startup misplaced 60% of its prospects and noticed its employees drop by 50% from 150 workers to simply 75. Now, it’s extra worthwhile than ever. The corporate elevated month-to-month revenues by 40% by charging a month-to-month payment of $7 to $14 for an account.
The explanation for the latest success hinges on Holvi’s newfound dexterity as a smaller firm. As Toivonen instructed Sifted, “Once you’re an impartial firm, you in fact have extra flexibility. And while you’re team-owned and run there isn’t any inertia in resolution making. You may make huge choices quick.”
What’s going to these “huge choices” appear to be in Holvi’s future?
The corporate tells Sifted it plans to launch a bank card providing to enhance its present debit card product. Holvi additionally disclosed it would launch a receivables financing software to assist entrepreneurs easy out money movement once they obtain bill funds late.
Holvi, which was based in Helsinki, Finland and operates in Germany, Finland, and Austria, doesn’t plan to enter new geographies in the mean time. The corporate might, nonetheless, contemplate re-entry into the U.Okay. market.
The renewed focus will doubtless show profitable for Holvi. When the corporate first launched in 2011, neobanking was a comparatively new idea, particularly within the industrial banking house. In as we speak’s setting, nonetheless, digital neobanks are commonplace. Not solely are shoppers accustomed to opening a brand new checking account with a digital-only financial institution, regulators are additionally extra comfy with how they function.
Photograph by Jake Hills on Unsplash