Neobank Ruuky files for bankruptcy

A bank based in Germany is on its knees in the wake of the economic crisis. What about the customers now?

The neobank Ruuky has been greeting on its website since last week with a sad lead: “Unfortunately, Ruuky had to file for the opening of insolvency proceedings and we are currently working on the future of your bank.”

The young customers of the Hamburger Bank, who are on average 16 years old, are shocked. On the social media channels they write: “I can’t reach you by email!” and “I picked up the money flux.”

Is the savings at risk? What Ruuky’s bankruptcy filing actually means for customers:

Balance not affected

Ruuky promises: “The disposal of the accounts and assets are not affected.” Means: The credit is not gone, payments and transfers are still possible, and the money cards also work. Payments should also be possible.

What is no longer possible: No new accounts can be opened, and real-time top-ups and the app’s pocket money assistant can no longer be offered.

What led to bankruptcy? Ruuky founder Jes Hennig said “Finance Forward”: “We have not been able to obtain new capital in the current market environment”. One of the main reasons is the current uncertainty in the global economy. Ruuky: “At this time, investors are very cautious about making further investments.”

According to the information, the next steps for the future of Ruuky GmbH are currently being determined together with an insolvency administrator in Hamburg. “The bankruptcy is a difficult step for us, but it also offers an opportunity. We continue to work on Ruuky and our vision,” writes Ruuky combatively.

What actually is a neobank?

So-called neo-banks like Ruuky are credit institutions that have specialized in the connection between the mobile app and the associated money card. At the Ruuky Bank, which was initially called Pockid, young adults under the age of 18 in particular were to be given the opportunity to make their first financial decisions with certainty.

They could manage their own money or set up savings plans. Founded three years ago, Ruuky has around 250,000 customers. Ruuky currently employs around 20 people.

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