In a notable development within the open banking sector, Norway-based Neonomics is shutting down its UK subsidiary, Ordo. This decision marks a strategic shift in Neonomics’ focus towards the Nordic and wider EU markets, seeking to capitalize on the increasing demand for open-finance data and payment solutions. Ordo, an FCA-authorized provider, joined Neonomics in 2023 as part of its expansive vision across the UK and Europe. Despite Ordo’s closure, Neonomics remains committed to innovation, exploring new services in the open-finance domain. The closure is part of an evolving landscape, reflecting broader trends within open banking.
Neonomics acquired Ordo to leverage open banking technologies, particularly in account-to-account transactions as an alternative to traditional card payments. Several key closures in the sector have been observed recently, including the UK fintech Vyne and Moneyhub’s direct-to-consumer app. Such shifts underline the volatility and the adaptive strategies transpiring within the industry, driving changes in organizational focuses.
Why is Ordo Closing?
According to Neonomics CEO Christoffer Andvig, the decision to close Ordo is driven by the need to allocate resources effectively across regions with more prominent growth opportunities. He stated,
“Neonomics has chosen to close its UK subsidiary, Ordo, so we can channel all resources into the Nordic and wider EU markets, where demand for our open-finance data and payments solutions is accelerating.”
This refocused strategy aims to meet the rising demand in the EU, launching services capitalizing on advanced open-finance capabilities. The potential for re-entering the UK market remains as future conditions align with organizational objectives.
What Lies Ahead for Employees?
The exact impact on employees remains uncertain as approximately a dozen individuals are associated with Ordo on LinkedIn. While Neonomics has not publicly addressed layoffs, the cessation of operations in the UK suggests potential job effects. The prevalent trend of reassessment within the sector indicates that businesses are navigating the complexities posed by region-specific demands and growth potential.
Neonomics emphasizes its commitment to fostering growth and scalability through the adoption of advanced services in the Nordic region. Continued investment in technologies that harness open-finance capabilities signals the company’s drive to maintain operational agility and competitive edge. Beyond this, Neonomics’ strategy mirrors a growing trend among open banking firms refocusing resources to areas promising higher returns.
Overall, the exit from the UK signals a strategic redirection towards a high-potential market with burgeoning opportunities. As technologies evolve, businesses are compelled to adapt their strategies. Future expectations include potential reintegration into the UK, pending favorable conditions. It reinforces the multidimensional approaches organizations are adopting globally, driven by innovation and market demands.
Converging industry trends depict an environment where entities must rapidly adjust and re-evaluate resources. The wave of closures within the UK open banking sector provides a microcosm of the wider shifts, emphasizing the necessity for targeted, adaptable business models. For consumers and stakeholders, understanding these dynamics offers a glimpse into the current and future financial technologies landscape, directing attention toward regions exhibiting higher receptivity and adoption rates.
