With LeadUp’s illegal and deceptive advertisement, they have gotten into trouble with the CFPB. The CFPB ordered them to stop business operations. Now, LeadUp is liquidating its assets, including Ahead financials which it had earlier promised would continue operations. While Kinky, another Neobank, has acquired some of LeadUp’s customers, some can’t transfer funds.
The fall of LeadUp is not unusual as Neobanks are finding it difficult to raise funds. Chime, a leading Neobank in the United States, has failed to launch its IPO plans. However, unlike Varo, which laid off about 75% of its employee, LeadUp still retains its staff.