German FinTech N26, Europe’s leading digital bank, has announced that the BaFin will fully lift the bank’s growth restriction effective June 1, 2024. This marks the end of a period when N26 was limited to onboarding up to 60,000 new customers per month. The restriction lift comes after extensive efforts by N26 to enhance its compliance infrastructure and fight financial crime and money laundering, as detailed in a previous FinTelegram article.
Enhanced Compliance Measures and Investments
Over the past two years, N26 has invested more than €100 million in its compliance infrastructure and teams. These investments have enabled the bank to implement sophisticated, intelligence-based models to analyze fraud potential and deploy self-learning transaction monitoring systems to detect suspicious activity in real time.
The bank’s close exchange with BaFin and the continued collaboration with a special representative until the end of 2024 reflect its ongoing dedication to maintaining high standards of financial integrity, the company said in its press release.
Strategic Growth and Profitability Goals
N26 has seen growing customer demand for its mobile banking app and new products launched in the first half of 2024. These offerings include Instant Savings accounts with up to 4% interest on deposits, a Stocks and ETFs trading platform, and Joint Accounts, allowing customers to manage all aspects of their financial lives within the N26 app.
With the growth restriction lifted, N26 is poised to expand its customer base and continue its trajectory towards monthly profitability, which it expects to achieve in the second half of 2024. This development is a significant milestone in N26’s journey, further reinforcing its position as a leader in the digital banking space.
About N26
Founded in 2013 by Valentin Stalf and Maximilian Tayenthal, N26 is Europe’s leading digital bank. With over 8 million customers across 24 European markets, N26 processes over €100 billion in transactions annually. The bank, headquartered in Berlin, boasts a diverse team of 1,500 employees from more than 80 nationalities and has raised close to $1.8 billion from renowned investors worldwide.
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