New banks

Challenger bank N26 raises $300 million, gears up for US launch

  • The Germany-based challenger bank has global ambitions.
  • This investment comes after a large round in 2018.
Challenger bank N26 raises $300 million, gears up for US launch

Challenger bank, N26 announced a $300 million Series D round. The funding comes as somewhat of a surprise, as the company closed a $160 million round in early 2018.

The global ambitions of N26: TechCrunch cites three reasons why Germany-based N26 raised this warchest now:

  1. N26’s user base tripled in a year (N26 currently has 2.3 million accounts) and about a third of customers are paying for the company’s premium Black or Metal accounts.
  2. Valuations have grown for the challenger bank. The last round was done at under $1 billion. In this round, N26 was valued at $2.7 billion
  3. The company has global ambitions and is preparing for a U.S. launch. The firm will need deep pockets to penetrate competitive markets.

2019 shaping up to be the year of the challenger banks: N26’s competitors, Monzo (£211.7) and Revolut (£336M) have both raised significantly large amounts of capital and have goals of going global. In the US, they’ll have to contend with domestic challengers, like Chime, as well as the digital arms of incumbent banks, like Chase’s Finn.

 

New banks

Exclusive: Behind the LendingClub acquisition of Radius Bank with Steve Allocca and Mike Butler

  • Last week, LendingClub announced it would acquire Radius Bank, a leading digital bank.
  • The presidents of both firms join us on the podcast to talk about the combined entity going forward.
Zack Miller | February 25, 2020
New banks

‘I was right but I was early’: Quontic Bank’s path from a single bank branch to digital bank with national aspirations

  • It isn't easy for a small institution to compete against large incumbents and challenger banks.
  • NY-based Quontic Bank provides a model for smaller banks with big aspirations.
Zack Miller | February 24, 2020
New banks

Fintech buys a bank: LendingClub to buy Radius Bank in a first-of-its-kind acquisition

  • It's the first time a US fintech has acquired a bank.
  • Radius provides a charter, a digital banking ethos, and the ability to hold deposits.
Michael Deleon | February 19, 2020
New banks

$1 billion in $28 increments: Stash reaches major milestone

  • Challenger STASH has reached a major milestone in its growth.
  • The company continues to expand its appeal to a broad swatch of users.
Zack Miller | February 14, 2020
New banks

The growing market of banking immigrants in the U.S.

  • People new to the country can find it very hard to connect to the banking system.
  • A handful of fintechs are focused on increasing financial inclusion to new immigrants and migrants.
Zoe Murphy | February 12, 2020
More Articles