The fintech landscape has grown relatively challenging for many participants. UK challenger bank Dozens is the latest outfit to wind down operations following the COVID-19 pandemic. Additionally, the company struggled to raise more funding during tough times, an issue that will affect many other companies moving forward.
Dozens Closes Up Shop In The UK
There is still much excitement where challenger banks are concerned. It is one of the more intriguing and exciting fintech segments, yet also one met with the biggest struggles. For Dozens, the only decision is to shut down operations entirely and call it a day. The company claims it suffers from the “domino effect incurred by covid and funding constraints”.
Dozens came to life in 2019 and aimed to provide various budgeting and analytical tools to consumers. These tools would help them save money and invest more wisely. Despite noting a user base of over 60,000 customers and raising over $33 million in funding, the company ultimately fell short of its goals. Users were informed about the impending wind down in June 2020, enabling them to move assets to a different provider.
Dozens issued a statement explaining:
“Covid hit when we were still a very early stage company. Overnight we lost both investment and B2B deals worth millions of pounds. Our focus immediately switched to survival mode – simply looking after our employees and customers for as long as we could to provide some form of stability at a time when everything was so uncertain.”
Dozens had run into issues in 2020 and 2021, forcing the company to migrate most of its services to new partners. Combined with less money in the system, supply chain disruptions, and Brexit, things do not look favorable for challenger banks. Moreover, the fintech industry faces a severe money crunch, although the forward-thinking firms will likely succeed. Dozens will focus its attention on building a B2B business venture.