Solaris
German licensed banking-as-a-service platform powering fintechs' accounts and cards.
On the record
Checkpoint: BaFin decision on lifting new-client onboarding restriction, plus 2024/2025 revenue disclosure
The call
Solaris keeps the one thing AI cannot buy, a banking license, but fines, layoffs, and a wiped-out valuation show the license alone has not been enough to stop the bleeding.
Solaris is a digital bank in Germany that holds an official banking license, which means it can legally take deposits and make loans in a way that pure software companies and AI startups cannot. This license is real protection against new tech competitors trying to copy what Solaris does. However, Solaris has shrunk to one-tenth of its peak value, faced multiple regulator fines for money-laundering and lending rule violations, lost customers, and is now trying to rebuild under new ownership with a focus on artificial intelligence. The license helps Solaris survive against AI challengers, but it does not make Solaris special compared to other licensed digital banks like Swan or ClearBank, and the cost of complying with regulators plus the risk of more dilution to shareholders now pose bigger threats than the license provides protection. The key question is whether German banking regulators will let Solaris start taking on new customers again and whether the artificial intelligence plan actually brings back paying clients within the next few quarters.
Why
01
AI pressure: None apparent. AI labs cannot get a German banking license, so they cannot replace Solaris directly, but AI-native rivals could undercut its software layer. Could AI do the core job? Only partly.
02
Bigger players: Swan, ClearBank, Griffin, and other licensed BaaS challengers. Rivals with cleaner compliance records court the same fintechs while BaFin restricts Solaris from onboarding new clients. Could a giant copy it? Probably.
03
What protects it. Its BaFin/ECB banking license lets it hold deposits and lend, a legal barrier no software or AI company can cross without one.
What would change this call
BaFin lifts or keeps Solaris's new-client onboarding restriction (in place since early 2023). Shows whether Solaris can resume growth or keeps losing prospects to licensed peers.
Court ruling or settlement in Solaris's €144M Binance litigation claim. Shows whether Solaris recovers cash or absorbs a further financial hit.
Solaris publicly discloses 2024/2025 revenue figures. Shows whether the AI-native pivot and client retention are producing real growth.
Court ruling or settlement in Solaris's €144M Binance litigation claim. Shows whether Solaris recovers cash or absorbs a further financial hit.
Solaris publicly discloses 2024/2025 revenue figures. Shows whether the AI-native pivot and client retention are producing real growth.
Key numbers
- Valuation fell from ~€1.6B to €90M
- €178M net loss in 2023
- Cut ~80 roles, 20% of core staff
Named risks
- Repeated BaFin enforcement (EUR 6.5M AML fine 2024, EUR 500K fine 2025) and extended special monitor.
- 94% valuation collapse and prior equity wipeout in Feb 2025 rescue round create dilution risk for future raises.
- New-client onboarding restricted by BaFin since early 2023, limiting growth and client wins.
- Unresolved EUR 144M Binance litigation could swing cash position materially either direction.
- Unproven 'AI-native bank' pivot launched alongside 20% layoffs in March 2026 risks execution failure.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| ConnectPay | gaining on | Ranked 'best overall' BaaS provider ahead of Solaris in 2026 industry comparison (2026-05-11) |
| Swan | gaining on | Healthier licensed BaaS peer while Solaris underwent 94% valuation collapse (Feb 2025) |
| ClearBank | gaining on | UK licensed BaaS competitor unaffected by Solaris's repeated BaFin fines |
| Griffin | gaining on | UK BaaS challenger positioned as stable alternative amid Solaris turnaround |
| Railsr | contesting | Direct BaaS/CaaS competitor in same European embedded-finance market |
Questions people ask
- Is Solaris profitable in 2026?
- No public profitability confirmed. Solaris posted a €56M loss in 2022 and €178M loss in 2023, with no 2024 or 2025 revenue figures disclosed as of mid 2026, a gap flagged by multiple trackers.
- Who owns Solaris now?
- Japan's SBI Group became Solaris's majority shareholder in March 2025, after co-leading a €140M Series G rescue round in February 2025 that valued the fintech at only about €90M post-money, down from a ~€1.6B peak.
- Did Solaris have layoffs?
- Yes. On March 25, 2026, Solaris cut roughly 80 roles, about 20% of its ~400 person core workforce, as part of its announced pivot to become 'Europe's first AI-native bank' under new CEO Steffen Jentsch.
- Could AI replace Solaris?
- Not the licensed core: Solaris holds a full German BaFin/ECB supervised banking license that AI vendors cannot obtain, so they can't originate regulated EU deposits or lending. AI is instead automating its back office, driving the March 2026 20% headcount cut.
- Who is Solaris's biggest competitor?
- Licensed BaaS peers like ClearBank, Swan, Griffin, Treezor and ConnectPay compete directly; a 2026 industry comparison ranked ConnectPay 'best overall' ahead of the distressed Solaris as of May 2026.
- What happened to Solaris's valuation?
- Solaris's valuation collapsed roughly 94%, from a peak of about €1.6B unicorn status to around €90M post-money in its February 4, 2025 rescue round, which raised €140M co-led by SBI Group and Boerse Stuttgart Digital Ventures.
Timeline
- 2026-03-25Solaris announces pivot to 'AI-native bank', cuts ~80 roles (20% of core staff)
- 2026-01Steffen Jentsch becomes CEO, replacing Carsten Hoeltkemeyer
- 2025-09-29Solaris selects ACI Connetic to consolidate SEPA Instant payments platform
- 2025-06BaFin fines Solaris EUR 500,000 for large-exposure limit breaches
- 2025-03-01SBI Group completes process to become Solaris majority shareholder
- 2025-02-04Solaris closes EUR 140M Series G rescue round at ~EUR 90M valuation
- 2024-07BaFin extends mandate of special monitor overseeing Solaris
- 2024-03BaFin fines Solaris EUR 6.5M for late suspicious transaction reports
- 2023-01BaFin restricts Solaris new-client onboarding pending approval
- 2022-11Solarisbank AG rebrands as Solaris SE
Revision history
21 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Solaris Raises EUR 140M Financing Round (2025-02-04)
- Solaris Newsroom
- Solaris SE Asset Profile
- How to Build a Sustainable BaaS Brand (2025-07-18)
- Solaris Number of Employees 2026 (2026-06-29)
- Solaris Cuts 80 Jobs Amid Transformation Into 'AI-Native Bank' (2026-03-27)
- The Essential AML/KYC Guide to Germany (2025) (2026-06-09)
- Can Germany's BaaS giant survive the fintech storm? (2025-02-06)
- Solaris (credit institution)
- Valuation, Funding Rounds & Stock Price (2026-03-24)
- Solaris announces plans to become 'Europe's first AI-native bank' (2026-03-26)
- Products, Competitors, Financials... (2026-06-17)