Member Exclusive

With N26’s $900 million round of funding, could it be retreating from the US market?

  • N26 raised $900 million, valuing the firm at $9 billion.
  • In spite of the new investment, the challenger bank's commitment to the U.S. market may be flagging.
close

Email a Friend

With N26’s $900 million round of funding, could it be retreating from the US market?

German challenger bank N26 announced a $900 million Series E funding this October.  N26 coupled that announcement with another, that it was renewing its focus back to its home markets, central and eastern Europe, and would pause its activity in the US market.

N26’s latest funding values the firm at $9 billion, a significant jump from its $3.5 billion valuation at the time of Series D. N26 is now the most valuable fintech out of Germany and ranks among the top 20 globally.

Since publicly entering the US market in partnership with Axos Bank back in August 2019, N26 released a variety of services in the country, like contactless payments, easier account funding, 2-day early direct deposit, spending limits, ATM locator, discounts, and other perks. 

This initial offering powered the bank to claim it had registered some 500,000 customers in the US. However, with its latest funding, the firm has pulled back on its operations in the US. From half a million customers, it has now reverted to having a waitlist in the country. 

This forces one to wonder whether this is another case of a European fintech firm withdrawing from the US market. Earlier, British fintech Monzo withdrew its request for a banking license in the US, following discussions with regulators and the Office of the Comptroller of the Currency. Revolut’s second US CEO, Ronald Oliviera, will be leaving the firm over the next few months. While it is unclear where Oliviera is headed next or why he quit the firm, there have long been reports about Revolut’s questionable work culture, with unpaid work, unachievable targets, and high-staff turnover, according to an insider.

 

 


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “With N26’s $900 million round of funding, could it be retreating from the US market?”

Outlier OpinionsMakers

Green Finance, Member Exclusive

Green Finance Briefing: An intro to environmental sustainability in banking

  • For banks and financial institutions, sustainability initiatives present opportunities as well as risks, according to a new report on the current landscape of environmental sustainability in banking.
  • Sustainability is a business conversation - climate change is bound to create a shift in resources, bringing with it a reallocation of capital away from the status quo.
Iulia Ciutina | September 30, 2022
Blockchain and Crypto, Member Exclusive

Bankchain Briefing: How crypto firm Blockdaemon is bucking the “crypto bro” trend

  • This week, we explore the current state of gender equality in the crypto industry, and what firms in the space need to do in order to counter the long-standing “crypto bro” trend and make way for a more egalitarian future.
  • We also discuss the current state of crypto regulation in the US, and look at how the lack of regulatory clarity is impacting the growth of the industry.
Ismail Umar | September 29, 2022
Member Exclusive, Online Lenders

Lending Briefing: Debit cards are taking over

  • This year, debit cards have emerged as the preferred payment method for the majority of US consumers, dethroning credit cards.
  • Younger generations are behind this switch – even though they're also getting credit cards, Millennials and Gen Zers prefer to pay with debit.
Iulia Ciutina | September 28, 2022
Member Exclusive

Why are regulators cracking down on bank-fintech partnerships?

  • A higher level of regulatory scrutiny is on the way for fintechs and the bank partners on which they rely.
  • Increased regulatory scrutiny could result in a safer and more resilient market to the benefit of consumers, says Brian Graham, partner at Klaros Group.
Lindi Miti | September 27, 2022
Innovation, Member Exclusive

Slack and Salesforce launch industry-specific digital solutions – what’s in it for FIs?

  • Slack and Salesforce have built solutions to help their customers make the most of their digital tools.
  • How will these solutions benefit financial firms?
Sara Khairi | September 26, 2022
More Articles