In wake of Wirecard AG’s collapse, Fintech open platform and banking as a service (BaaS) solutions provider Railsbank is reported to be preparing a bid to acquire the former Frankfurt Boerse UK payments division.
Railsbank pursues its interest in Wirecard’s UK assets, as last month Europe’s biggest payment processing firm filed for insolvency, with its accounts revealing that it owed approximately €4 billion to its creditors.
Further developments saw Munich courts appoint German law firm JAFFÉ Rechtsanwälte to act as Wirecard’s ‘preliminary insolvency administrator’, appointing external agencies to carry duties related to paying the € multi-billion insolvency.
The potential purchase may well bring a level of stability to the UK fintech sector which will have felt the shockwaves of the Wirecard scandal. Given the firm was one of the most significant players in the UK fintech eco system.
The UK’s Financial Conduct Authority (FCA) recently implemented a host of restrictions on Wirecard AG, following the digital payment processing firm’s decision to file for insolvency in its home market of Germany.
The FCA detailed that Wirecard UK must cease any regulated market activities, with the financial services regulatory body emphasising that Wirecard is restricted from disposing of any assets and funds during its period of investigation.
It came after the firm’s former CEO Markus Braun was arrested on charges of corruption and executive mismanagement.
However, Railsbank’s intervention may well be seen as something of a saviour for the firm, with it expected to take ownership of Wirecard’s clients and a number of employees.
The elements of the business that aren’t acquired by the London-based bank are set to be wound down.
