Tag: N26

High-profile enforcement actions against Binance, N26 and (most recently) Monzo have created the impression that FinTechs and crypto firms are the drivers of modern money-laundering risk. A review of the past two decades shows the opposite: the scale, sophistication and—crucially—intent demonstrated by major TradeFi institutions such as Deutsche Bank, ING and Austria’s Meinl Bank far exceed the lapses seen so far in the FinTech space.

Revolut, the leading digital banking platform, is gearing up to launch mortgage products in Ireland by the first half of 2025. Operating under its Lithuanian banking license, Revolut plans to offer a fully digital mortgage application process. This move follows the company’s expansion into personal loans in Ireland and reflects its strategy to disrupt traditional banking sectors by leveraging technology to provide faster and more efficient services.

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.

The German FinTech N26 has faced significant regulatory challenges. Over the past few years, N26 has been under intense scrutiny from BaFin, Germany’s financial regulator, primarily due to poor anti-money laundering (AML) controls. This scrutiny has profoundly affected the company's growth and financial health. In the Binance case, the consequences of non-compliance have been even more severe, resulting in prison sentences and charges against executives.

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Germany's financial regulator, BaFin, has fined online bank N26 a hefty €9.2 million ($10 million) for its systematic delays in filing reports of suspected money laundering during 2022. The penalty highlights the ongoing regulatory scrutiny faced by financial institutions in ensuring compliance with anti-money laundering (AML) regulations. N26 repeatedly failed to promptly submit reports to the Financial Intelligence Unit (FIU).

The regulated Austrian crypto exchange operator and custodian Bitpanda announced that it has entered into a strategic partnership with Landesbank Baden-Württemberg (LBBW), the largest state-backed bank in Germany, to deliver advanced cryptocurrency solutions for corporate clients. This collaboration utilizes Bitpanda's "Investment-as-a-Service" (IaaS) infrastructure, aiming to provide secure cryptocurrency custody and procurement services.

N26, the Berlin-based digital banking platform, has officially announced the launch of its cryptocurrency trading feature, N26 Crypto, targeting its customer base in France. This development signifies N26's effort to enhance the digital banking experience by incorporating the capability for clients to directly engage with cryptocurrency assets through the N26 application. The service is designed to facilitate the trading of over 200 cryptocurrencies in a manner that is both secure and efficient.

Mayur Kamat, previously a key figure at the crypto exchange Binance, is set to join the Berlin-based digital bank N26 as its Chief Product Officer starting in the second quarter of 2024. Kamat brings a wealth of experience from his tenure at Binance, where he was instrumental in leading the global product and design teams. His career spans significant roles across Agoda, Google, and Microsoft, marking him as a veteran in the field.

N26 announced the launch of a new Stock and ETF trading product, allowing all account holders to buy and sell stocks and ETFs for €0.90 per trade directly in the N26 app. The German digital banking pioneer N26 is set to enhance its service offerings through a partnership with Upvest. It marks a significant expansion in N26's product range, bringing it close to the market leader Revolut.

Berlin-based fintech Trade Republic has achieved a significant milestone by obtaining a full banking license from the German financial supervisory authority, BaFin. This development places Trade Republic alongside prominent fintech banks like N26 and Solaris, expanding its capabilities beyond its current status as a securities trading bank. Previously, the broker partnered with licensed banking partners like Deutsche Bank.

The global financial landscape has undergone a seismic shift over the past two decades, with FinTech and cryptocurrencies at the forefront of this transformation. However, with innovation comes challenges, and the FinTech scene has seen its fair share of highs and lows. From the meteoric rise of companies like Wirecard to the subsequent crises faced by crypto giants, the journey has been tumultuous. Here is a summary and a glimpse into the future.