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Open banking app Sync. goes into administration

The app had raised a significant amount of capital and once had its sights set on European expansion and a Series A.

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Ricky Lee (second from right)/Splento via Facebook

Open banking app Sync. has gone into administration.

The company offered an app that allowed users to synchronize all of their financial accounts, including bank, credit, loan, and mortgage accounts, as well as to budget and track their finances and exchange currencies.

Sync. also offered users its own branded physical card, which didn't have a magnetic strip like the majority of other physical cards. 

Shane Biddlecombe and Gordon Johnston of Southhampton-based debt insolvency service Trusolv Business Recovery are set to act as joint administrators.

The company continues to be authorized and regulated by the Financial Conduct Authority (FCA).

The fintech's co-founder and CEO Ricky Lee, who previously held senior design positions at Revolut and Lloyds Bank before founding the firm, has yet to update his Linkedin following the development. 

According to data from Crunchbase, the company raised US$ 6.4M as part of seed funding on March 2020, and it also inked partnerships with Mastercard and Global Processing Services (GPS).

No reasons have been publicly supplied for the issues that caused the insolvency, though AltFi has contacted them for clarity. 

Though a beta version of the app was made available to 37,000 registered early access users in August 2020, allowing them to test the app's features, the app never received a full launch to the general public. 

At one time, the firm had planned to expand across Europe, telling AltFi exclusivelythat it had eyes on an office in Lithuania alongside its existing offices in Malaga and London. 

In addition, the firm said it hoped to one-day offer premium accounts, money management features, and over 30 currencies for exchange, as well as a Series A funding round.

The firm still has 14 employees on LinkedIn as of writing and the app appears to no longer be available for download from Google Play or the Apple App Store.

Sync. isn’t the only well-funded fintech to file for insolvency in recent months, European neobanking app Nuri (formerly Bitwala) filed for insolvency in August of this year after already laying off 20 per cent of its staff in May, despite having raised €42.3 million over eight rounds according to Crunchbase. 

Nuri attributed the financial troubles to: "the ongoing after-effects of the Corona pandemic and the economic and political uncertainties in the markets after Russia`s invasion of Ukraine, we have been facing significant macroeconomic headwinds and the cooling down of public and private capital markets".

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