Record figures

N26

N26 is a purely online bank without branches.

(Bild: N26 GmbH / OTS)

With the end of the restrictions, the digital bank N26, founded by Viennese bankers, can continue to grow unabated. For the first time since it was founded over ten years ago, the Berlin-based fintech company is in the black in a quarter. A quarterly profit of 2.8 million euros and 200,000 new registrations per month were recorded. Previously, Neobank was allowed to accept a maximum of 60,000 customers per month.

This year, the smartphone bank expects a 40 percent increase in business and 4.8 million customers. "We will achieve almost half a billion in annual turnover this year," says founder Valentin Stalf, who comes from Vienna. Gross revenues of 440 million euros are expected for this year. In the coming years, N26 will move in the direction of one billion euros in annual turnover. The transaction volume is also increasing. It amounts to 140 billion euros this year.

The good profits are mainly due to the favorable interest rate environment. Neobank has over ten billion euros in savings deposits, and the high key interest rates have driven up profitability, as they have for all banks. Net interest income already rose by over 100 percent in 2023 and is also up significantly this year.

100 million euros for combating money laundering
Until the middle of this year, N26 was only allowed to accept a maximum of 60,000 new customers per month, previously only 50,000. The German banking supervisory authority saw shortcomings in measures against money laundering. After the bank invested heavily in combating crime, the restrictions were lifted, which had a positive impact on the Berlin-based bank's growth figures. "Today, we are pioneers in the fight against fraud," says Stalf. The bank has already invested over 100 million euros in anti-money laundering measures. AI is also used here to detect fraud and uncover patterns.

The two Austrians Maximiliam Tayenthal and Valentin Stalf founded the bank.

(Bild: ALEXANDER_BABIC)

N26 is already active in 24 markets. "Further markets are to be added next year, and we still see good opportunities in Eastern Europe in particular," says Stalf. But there is still plenty of room for growth in the existing markets too. "Our brand awareness is below 50 percent in most markets. So there is still a lot of catching up to do here too," says Tayenthal. The company is the market leader in the major markets of Spain, France and Germany, even ahead of its major British competitor Revolut. Italy is also an important market, although restrictions still apply here, which N26 wants to get rid of soon.

9 billion dollar valuation for Neobank
At its last valuation, the company was valued at nine billion dollars. The two founders Maximilian Tayenthal and Valentin Stalf each hold 12.5 percent of the shares and are therefore among the richest 100 Austrians.

In future, the company intends to focus more on corporate customers, lending and investments. In the Netherlands, the company already offers small consumer loans as well as mortgage loans. "In the Netherlands, the volume of real estate loans is almost as high as in Germany, which is five times larger. That makes it an interesting market for us," explains founder Maximilian Tayenthal. The Dutch are much more inclined to own property than in Germany. N26 has already granted 600 million euros in loans there. This is to be expanded to other countries in the future.

The company also wants to compete with established banks in the corporate customer sector. Until now, this has only been possible for freelancers, but in future companies with several employees will also be able to become N26 customers and process their corporate banking transactions 100% digitally. The prices will be very attractive.

Rumors about mobile phone plans
There have also been rumors about the company's mobile phone plans for some time. Talks are underway with a start-up and there could be concrete news soon, which would also raise the bank's profile.

The range of services for small investors in cryptocurrencies or shares and funds is also to be expanded. However, these areas only make up a small part of turnover. "We want to roll out all offers as well as possible in all our markets," says Stalf.