The German financial regulator Bafin is tightening its control of the prominent Berlin-based fintech Solaris. A “permission proviso will apply to the institute in the future with regard to new partnerships,” Solaris CEO-designate Carsten Höltkemeyer told the German Handelsblatt. “So we have to get the green light from Bafin before we are allowed to take on new customers.” This requirement is exceptional for the German banking sector. Solaris has acquired a reputation for facilitating scam operators.
The new BaFin restriction makes clear that the financial regulator still sees many weaknesses at Solaris. Until those deficiencies are addressed, BaFin can severely restrict the company’s ability to take on new customers.
Solaris was last valued at €1.6 billion and is of great importance to the fintech ecosystem in Germany. The institute allows other startups to use Solaris‘ banking license and do their first business with it. In addition, Solaris offers banking services to established companies, for example, credit card issuing.