AS Inbank has decided to exit the Czech market and intends to discontinue new sales by 1 January 2027, gradually running off its existing portfolio. Czechia accounts for less than 4% of Inbank’s total loan and rental portfolio, and the exit will not have a material impact on the Group’s financial standing.
Inbank started operations in the Czech market in October 2022. Following four years of operations, investment, and business development initiatives, Inbank has concluded that the market structure, characterized by the dominant role of large universal banks and financial advisors, does not provide the conditions for its merchant-based business model to achieve sustainable growth and targeted return on capital.
Priit Põldoja, CEO of Inbank, comments:
“Despite our best efforts and our proven technology and products we brought to the Czech market, our experience has taught us that the market is not the right fit for our business model. This decision allows us to concentrate our resources on growing our profitable businesses, developing new products, and pursuing opportunities in markets where we see a stronger strategic fit. Our joint venture with Eurobank in Greece is a strong example of this approach, where we will continue to focus on launching the business in early 2027.”
Existing customer agreements will remain unchanged, and Inbank will continue to service its Czech customers until all agreements have ended and all outstanding obligations have been fulfilled. Merchant partners will be contacted individually regarding the termination of cooperation in accordance with the terms of their agreements.
For the time being, Inbank will continue to operate in Czechia as a branch of AS Inbank while evaluating alternative operating structures. Inbank will decide on the future structure during 2027, in dialogue with the Estonian and Czech regulators, and share further updates as the process progresses.
The exit will involve a reduction of the Czech team to the size that is optimal to continue offering quality service to existing customers and partners and manage the portfolio run-off.
Inbank is a financial technology company with an EU banking license that connects merchants, consumers and financial institutions on its next generation embedded finance platform. Partnering with more than 6,000 merchants, Inbank has 787,000+ active contracts and collects deposits across seven markets in Europe. Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange.
Additional information:
Styv Solovjov
Head of Investor Relations
+372 5645 9738
styv.solovjov@inbank.ee
Merit Arva
Head of Corporate Communications
+372 553 3550
press@inbank.ee
