On November 18th, N26 announced in a statement that its digital banking experience will no longer be available to 500,000 customers in the US after January 11, 2022. The announcement comes as the digital banking leader continues to sharpen its focus on its European business, with an emphasis on expanding its offer beyond its current accounts to cover additional financial products and services.
N26 will focus its strategy on broadening its digital banking experience into new verticals to include investment products in the coming year, with the goal to create an even more complete and compelling digital proposition, explained the company. By bringing additional financial services and products into its experience, N26 aims to further empower customers to manage additional aspects of their financial lives simply and seamlessly. On top of strengthening its core business operations in Europe, N26 is also assessing future expansion into additional markets in Eastern Europe in response to growing customer demand in the region.
Founded in 2013, the Berlin-based company had entered the North American market in August 2019 with significant investments.
The US cut comes shortly after German financial regulator Bafin appointed a special representative to oversee N26's activities, deeming the young bank too unorganised to deal with various risks associated with its operations. In the spring, Bafin also fined N26 €4.25 million for late reporting of suspected money laundering. In the immediate future, it must reduce its recruitment of new customers to "50,000 per month" to slow its growth.
The bank had left the UK in early February 2020 following Brexit.
On October 18, N26 announced its record-breaking $900+ million Series E funding round, the largest financing round to date for a digital bank in Europe. The recent funding increases the company’s valuation to more than $9 billion, making the Berlin-based pioneer the highest valued fintech in Germany, and ranking it amongst the top 20 fintechs in the world.
Publié le 22 novembre 2021