N26 history

Number26 was founded in February 2013 by German entrepreneurs Valentin Stalf and Maximilian Taienthal.

Prior to founding Number26, Valentin Stalf studied accounting and finance at the University of St Gallen, Sophia University in Tokyo and the Vienna University of Economics and Business Administration. During his studies he worked in strategy consulting and investment banking.

After graduation, he joined the internet incubator Rocket Internet. There he participated in the creation of various companies and acted as entrepreneur in residence.

Maximilian Taienthal studied business administration, international law and management in Vienna, Rotterdam and Paris. Before founding N26, he worked as a strategy consultant at Booz&Company and as an assistant to the CFO at Austria’s largest insurance company.

Until 2016, Berlin-headquartered startup Number26 operated without a licence and provided financial and credit services only to residents of Austria and Germany. Three years later, the company received the name N26 and a European banking licence. In 2016, N26 officially became the first non-bank in Europe.

It provides full online banking services: creation and processing of current accounts, debit card management, storage and transfer of funds. All functions are available on the website or in a smartphone application.

N26 came to the UK market in October 2018. The company is already present in 24 countries in Europe. Neobank serves more than 8 million customers.

In comparison, in 2016, about 300 thousand people used the service.

History of N26

In 2013, Rocket Internet incubator employee Valentin Stalf and his friend Maximilian Taienthal, an assistant to the CFO of a large insurance company, quit their jobs and created the fintech startup Papayer, which was soon renamed Number26.

Valentin Stalf: Maximilian and I have known each other since high school. We trust each other – this is very important when you start a business with someone together. In addition, our experience and knowledge from different fields complement each other.

Maximilian worked in law and I worked in start-ups. Showing that banking doesn’t have to be as cumbersome as the old banks imagine it to be is our goal.

Initially, the entrepreneurs wanted to launch a project for teenagers and their parents. According to the idea, the service would allow you to create an electronic wallet and use it like a regular bank account.

It was supposed to be possible to withdraw money from it via ATMs with a plastic card, and the key feature would be the ability to monitor all financial transactions using tools on the company’s website and in applications. The product was supposed to be of interest to parents who give their children pocket money and want to know what they spend it on.

After nine months of development, the entrepreneurs revised the idea of the service and started working on a full-fledged mobile bank. In this direction, the entrepreneurs saw more prospects for development.

In 2014, Stalf and Taienthal attended TechCrunch Disrupt London, an annual tech conference. The entrepreneurs talked about the service and showed its closed beta version. But the Number26 project was coldly received by the public and did not receive support from investors.

Investments in the company

In 2014, the company had money to grow: Earlybird Venture Capital, a venture capital investor focused on European technology companies, invested €2 million in the startup.

In total, N26 has received more than $512.8 million in financial backing from 2014 to 2019. Investors include PayPal founder Peter Thiel, Hong Kong billionaire Li Kashin, as well as Tencent, Insight Venture Partners, GIC, Allianz X, Horizons Ventures, Greyhound Capital, Battery Ventures, Zalando and Redalpine Ventures.

N26 claims that the bank has received the largest non-IPO equity funding in the German fintech industry since its inception, and one of the largest in Europe. In 2018, TechCrunch named online bank N26 one of Europe’s most promising startups.

Creation of neobank N26

In January 2015, Stalf and Taienthal launched Number26, an online banking service. The company released apps for iOS, Android and launched a website. For banking transactions, Number26 started co-operating with Wirecard, an internet technology provider for electronic payments.

The company issued and processed physical and virtual cards. To enable the company’s cards to be used throughout Germany, the entrepreneurs utilised the Barzahlen payment system. This enabled Number26 customers to top up their accounts and withdraw cash. Over the course of a year, the company attracted more than 200,000 users.

In July 2016, Number26 was renamed N26. In the same year, the company received a European banking licence from the German Federal Financial Supervisory Authority. After that, the startup launched in six more countries: France, Greece, Ireland, Italy, Slovakia and Spain.

The launch of the N26 in the UK

In October 2017, N26 launched in the UK. At that time Revolut, Monzo, Starling, Atom and Tandem Bank were already operating in the UK.

N26’s UK customers were provided with sterling accounts, a debit card and personal account tools. As N26 already had a German banking licence, the company was able to start operating without obtaining a separate licence for the UK.

As the UK uses a different payment system to the EU. That’s why the startup N26 launched in the UK only in 2017. All this time the company has been working on the system of integration with the British banking system.

Thanks to the system of integration into the country’s banking system, N26 has received bank sort codes. They determine in which banking system the bank is located and whether the accounts of its customers can be serviced. N26 users can fully utilise the functions of their account, for example, to pay utility bills.

Opening an account with N26

During a speech at the TechCrunch Disrupt London conference in 2014, Valentin Stalf named speed as the main advantage of his product over other European banks. In 2019, this statement has not lost its relevance. The company’s website offers to open a bank account in eight minutes. You can also do it in the iOS or Android apps.

Valentin Stalf: We are trying to rethink how a bank should work, and we are creating something similar to Uber or Spotify, only in fintech. We’ve spent a lot of time making sure our customers can use our mobile bank effectively. If you look at traditional banks, they tend to have a large branch network and use 1980s technology. We have tried to create a framework that is based on our mobile applications. The user has everything they need on their smartphone screen.

Any citizen of the European Union over the age of 18 can become a client of the bank. On the N26 website or in the mobile application, it is necessary to enter your name, surname, country and age, make a video call to a bank representative and show your passport to confirm your identity. The bank’s employees then open a current account for the new user and send a Mastercard debit card by post.

As N26 has a banking licence, all deposits up to €100,000 are insured by the European Deposit Guarantee Scheme (DGS). The user is then able to send and receive money and pay for purchases with the card. Sending money to other N26 users is instantaneous, a feature called MoneyBeam.

Valentin Stalf: Our goal is to create a fully mobile bank that is as easy to use as possible. We pay special attention to creating a fintech hub. We are trying to unite fintech and all related products so that customers can access them from one application.

Opening an account with N26 is a fairly simple and completely digital procedure. Here are the basic steps:

1. Downloading the App: Start by downloading the N26 mobile app to your device via the App Store or Google Play.
2. Registration: Register in the app by entering your personal information, including your name, email address and postal address. You will also need to enter your date of birth and national insurance number (depending on the country).
3. Identity Verification: To verify your identity, N26 usually requires you to upload a photo of your passport or ID card and perform a short video identification. In some cases, additional verification may be required.
4. Selecting an Account Type: Select the type of account you wish to open – a standard free account or one of the paid premium accounts that offer additional benefits.
5. Setting the PIN Code: Select the PIN code for your new N26
6. Delivery Address: Enter the address where your N26 card is to be delivered.
7. Waiting for Confirmation: Once your registration is complete, your application will be processed. This process may take a few days.
8. Receipt and Activation of the Card: Once you receive your card in the mail, you will need to activate it via the mobile app.
9. Funding your Account: After activation, you can top up your account using bank transfer or other available methods.
10. Account Usage: Once your account is funded, you can start using your N26 account for your day-to-day banking transactions.

It is important to recognise that the process and requirements may vary slightly from country to country. Make sure you meet all the requirements to open an account in your jurisdiction.

Functionality of the N26 service

The user can set up push notifications: receive transaction statuses or bank warnings about suspicious activities. You can block your card in a couple of clicks via the app in case of loss or cancel the blocking, and you can also freeze the card for a while. All transactions and account operations are displayed in real time in the bank’s application.

Also in the mobile app

users have access to customisable overdraft and financial instruments. For example, you can analyse your spending for a day, a week, a month or a whole year. Geo-location-aware spending information is provided: at cafes, shops, petrol stations and more. In 2018, N26 launched Spaces, a new feature that allows you to create sub-accounts to store and save money.

The app’s functionality can also be used in conjunction with voice assistants. In 2016, the N26 app on iOS introduced the ability to send money using the Siri voice assistant. To do this, the user must tell the assistant to whom and how much money they want to send, and then instruct it to use the N26 app.

At the WWDC 2016 Worldwide Developers Conference, Apple talked about Siri integration with iOS apps. As an example, the speaker showed screenshots of the N26 app. Bank users can also send money via iMessage.

To better understand the user, N26’s services use artificial intelligence technology. This should be one of the advantages over competitors when launching a startup in the US market.

Valentin Stalf: The N26 app shows your credit rating, your salary and all your spending. But most people don’t have enough time to deal with financial issues and need good recommendations. For example, by analysing your credit history, artificial intelligence will suggest options on what the user can spend money on.

If, based on your family budget, the algorithm considers that you would be better off buying a flat rather than paying rent every month for a rental property, it will suggest affordable purchase options. All of this will be available in the near future.

The N26 supports a variety of currencies, but there are some features that are important to understand:

1. Primary Account Currency: The main currency of the N26 account is usually the euro (EUR), as the bank is based in Germany and is primarily focused on the markets of the European Union.
2. Transactions in Other Currencies: N26 users can make transactions in different currencies. When you make a purchase or withdraw cash in a currency other than euros, the amount is automatically converted to euros at the Mastercard or Visa exchange rate (depending on your N26 card type). This means you can use your N26 card abroad without any problems.
3. Conversion fees: Although N26 offers competitive exchange rates, conversion fees may be charged in some cases, especially if you are using a standard account. Premium account users often receive favourable currency conversion rates.
4. International Transfers: N26 offers international transfers through a partnership with TransferWise (now known as Wise), allowing users to send money to many countries around the world in a variety of currencies at competitive rates.
5. Savings Accounts and Deposits: Savings Accounts and Deposits opportunities in different currencies may vary and are subject to current N26

It’s important to note that terms and conditions and features are subject to change, so it’s advisable to check for up-to-date information on the official N26 website or their mobile app.

Map N26

N26 is an innovative bank founded in 2013 in Berlin. It offers mobile banking centred around ease of use and transparency. Its main feature is a contactless debit card that is linked to a mobile app. This allows users to manage their finances in real time.

The N26 app provides a wide range of features such as instant transaction notifications, detailed expense reports, the ability to set spending limits and card locking. In addition, N26 offers innovative financial products, including personalised savings plans and investment options.

N26 co-operates with various financial partners around the world, which allows us to offer competitive exchange rates and low commissions for international transfers. The security of user data and transactions is ensured with the help of modern encryption technologies and multi-level security system.

This bank is particularly popular among young people and digital nomads due to its flexibility, ease of use and minimalist design. N26 continues to expand its influence by offering new and innovative solutions in the world of digital banking.

Commissions N26

Commissions at N26 depend on the type of account and services used. Here are some key aspects related to commissions in N26:

1. Basic Account (N26 Standard): This account is usually free, including a free debit card and no account maintenance fees. However, fees may be charged for certain services such as international transfers through TransferWise.
2. Premium Accounts (N26 You, N26 Metal): These accounts require a monthly fee but offer additional benefits such as free international cash withdrawals, travel insurance and partner discounts. Fees for premium accounts vary by level.
3. Cash Withdrawals: In the basic account, free cash withdrawals may be limited in number per month in your country. Once the free withdrawals are exhausted, a small fee will be charged. Premium accounts usually offer more free cash withdrawals.
4. Currency Conversions: A small fee may be charged for currency conversions for transactions outside the Eurozone, especially if the transaction takes place over the weekend or on a basic account. Premium accounts may offer more favourable terms.
5. Other Services: Additional services such as express card delivery may incur additional fees.

It is important to note that terms and fees are subject to change and it is advisable to check the latest information directly on the N26 website or their mobile app.

How N26 earns its money

Neobank N26 does not earn interest on local currency transactions, nor does it charge for the maintenance of the user’s main account or account. But the company does charge a subscription fee for its N26 Black premium card. The premium card offers additional services such as travel and mobile phone insurance, and its holders have lower foreign currency transaction fees.

N26 also earns money by acting as a financial platform using artificial intelligence technology. The bank offers users savings, investment, credit and insurance products directly through the app.

N26 also provides a platform for other fintech companies to sell their services to its customers, paying a percentage of sales.

Valentin Stalf: We want to create competition in the product. If we look at our platform in a few years, we will see many fintech companies competing with each other for the user’s attention. The customer will be able to choose the service with the best transfer speed or open a savings account on the most favourable terms. The service will be based on personalised suggestions from artificial intelligence.

N26 offers third-party instruments for investing funds and allows you to open a savings account. For this purpose, the bank has entered into an agreement with the German companies Raisin and Vaamo. Raisin allows you to open a savings account in a few clicks.

And Vaamo offers investment asset management services with robo-advisors. The technology makes it possible to personalise offers by offering the most favourable prices. In this way, the robot replaces a bank advisor and a dealer at the same time.

There is also an opportunity to arrange insurance services on the bank’s website. For this purpose, N26 co-operates with the American insurance agency Clark. And N26’s partnership with German lender Auxmoney allows the bank’s customers to apply for a loan in a few minutes. To do this, it is necessary to put an electronic signature in a special window of the application and specify information about the transaction.

Valentin Stalf:

Thanks to our state-of-the-art customer experience systems, it costs only one-sixth of what traditional banks spend to serve a customer. And that value will continue to decline – the more customers we have on our platform, the more we earn. That’s why the focus is on growth. We want to offer better and cheaper banking services to more customers around the world.

Travellers praise N26 for its ability to withdraw free cash worldwide. For international money transfers, N26 partners with TransferWise, a cross-border currency conversion specialist. This approach allows the company to charge lower exchange fees for international money transfers than standard banks.

Minuses of N26 – registration using a fake passport

In 2018, the German weekly Wirtschaftswoche published an article criticising the reliability of user identification on N26. Wirtschaftswoche claims that it is possible to create an account on the service using a fake passport. The company does not deny this.

Valentin Stalf, co-founder and CEO of N26:

There have been cases where people have provided us with forged passports and, unfortunately, we discovered this after they had been registered. But this is a common problem, and many banks face such cases.

To minimise cases of fraud, N26 continuously verifies all transactions of the bank’s customers. The company also co-operates with SafeNed, a platform for deposit management and customer identification.

There are different ways of checking documents. You can start a video call with a bank employee so that he or she can check the passport and compare the photo in it with the client’s face.

German citizens can prove their identity at the post office. Or you can take a selfie with your passport in front of you and send it in for verification. This method of identity verification is popular in the UK.

The system can only be logged in with a password or fingerprint. All online and offline transactions are verified using a pin code. To combat malicious users more actively, N26 has launched a reward programme for identifying errors or failures in the system.

Mass cancellation of accounts in N26

In June 2016, N26 Bank closed the accounts of more than 160,000 users. This represented less than 0.2% of its customer base, but caused a lot of criticism of the company, with the bank being criticised particularly sharply on Twitter.

As it later turned out, the account closures were due to suspicious activity on customers’ accounts, as well as too frequent cash withdrawals.

The bank does not charge customers when they withdraw money; instead, it pays a percentage for the transactions itself. In Germany, the fee ranges from €1.5 to €2. Due to massive cash withdrawals, N26 was forced to close active accounts to avoid losses.

Valentin Stalf, co-founder and CEO of N26:

In Germany, withdrawal fees range from €1.5 to €2, which is significantly higher than the European average. We cover this fee on the assumption that most customers will use their accounts reasonably. But there were people who withdrew money for months on end – 15 times and sometimes 30 times a month. This proved to be too expensive for us.

To avoid such conflicts in the future, N26 adopted a “Fair Use Policy” for German residents. It introduced limits on cash withdrawals without commission – up to five times a month, and introduced a “grace period” for new users. After the limit is exhausted, customers will be charged a fee of €1.5 to €2, and new account holders can make unlimited withdrawals without commission for three months.

Cost of N26 company

Neobank N26 was valued at $2.7bn in 2019, overtaking Revolut’s $1.7bn valuation to take its place as the most valuable fintech startup in Europe. It was helped by a $300m funding round from Insight Venture Partners in January.

It has become the largest private equity funding round for fintech companies in Europe, according to US analyst firm PitchBook. In 2019, the size of deposits in N26 exceeded $1bn.

Licence N26

N26 is a German neobank providing online banking services to customers in Europe and the United States. The neobank was founded by Valentin Stalberg and Maximilian Teichmann in 2013 in Berlin. N26 currently has more than 8 million customers in 25 countries and services more than €2 billion in its accounts.

N26 offers various financial products: free basic account, premium accounts with additional features, loans, investment options and insurance. It also provides free international money transfers and cash advances in various currencies worldwide.

Bank N26 is a licensed bank that is governed by European banking regulations. It uses advanced technologies such as artificial intelligence and machine learning.

‍N26 operates with a full banking licence issued by the European Central Bank (ECB) and the German Federal Financial Supervisory Authority (BaFin). This licence was obtained in July 2016 and marked an important milestone in the company’s development, moving it from a fintech company dependent on a partner bank for its core banking platform to a fully licensed bank. This transition has enabled N26 to independently offer the full range of banking services traditionally expected of a bank, including retail banking such as deposit management in personal and corporate bank accounts, as well as more sophisticated banking services such as lending.

Obtaining a banking licence meant that N26 had to meet a strict set of prerequisites, including meeting regulatory standards, minimum capital requirements and ensuring robust security and data protection measures. As a licensed bank, N26 can provide services such as consumer loans in Germany and France, overdraft offers in Germany and Austria, and the issuance of local IBANs for bank accounts in Spain and Italy. In addition, deposits made with N26 are protected up to €100,000 under the German Deposit Protection Scheme, which is the standard level of protection for European banks. The lawyers at Regulated United Europe can assist in obtaining an EMI licence in Europe as well as brokering the acquisition of a company with a valid financial licence in Europe.

N26’s operational strategy has undergone significant geographical changes in recent years. For example, in 2020, N26 ceased operations in the UK due to Brexit, indicating the need for a separate UK banking licence as a result of the UK’s exit from the European Union. This decision affected all UK-based accounts that were subsequently closed. In addition, in November 2021, N26 announced that it was withdrawing from the United States to focus on its core European business. This decision resulted in the closure of approximately 500,000 U.S. customer accounts, signalling a strategic refocus on the European market.

N26’s commitment to adhering to regulatory standards and providing safe banking services is evident in its journey from fintech start-up to a

History of N26 by year

2013

Founding of Bank N26 in Berlin.

Conclusion of a contract for issuing Mastercard cards.

Launch of the first version of the mobile application for online banking.

Beginning work on building banking infrastructure.

Closing a deal with venture capital investors, including Earlybird Venture Capital’s platform.

Obtaining the first banking licence in Germany.

Launch of the first test accounts for clients.

Opening of the company’s first branch office in Vienna, Austria.

Launch of the beta testing programme for the mobile app.

Raising €2.6 million in investment from investors.

Increasing the number of employees of the company to 100 people.

Conducting the first series of test payments through the N26 app as part of the N26 Alpha project.

Obtaining a banking licence from the Central Bank of Spain.

Acquisition of the German payment company Paymill, which enabled the bank to expand the functionality of its application.

2014

Signing of a partnership agreement with Wirecard AG, Germany’s largest bank.

Obtained a licence to provide banking services from the UK regulator Financial Conduct Authority.

Launch of a real-time instant transfers service between N26 accounts.

Enabling Apple Pay for users in Germany.

The launch of the N26 financial management app for Apple Watch.

Opening of new company offices in Barcelona and Vienna.

Executed the first campaign to attract new customers using the Product Hunt website.

Obtaining a financial licence in Lithuania.

Attracting €10m investment from investors in the US and Europe.

Doubling the number of the company’s employees from 100 to 200 people.

2015

Launch of the N26 Black service, providing additional services and benefits to customers, including travel insurance and currency exchange services.

Launch of N26 Metal, a new product for customers offering a range of additional privileges and a unique card design.

Obtaining a financial services licence in Germany from the Federal Financial Supervisory Authority (BaFin).

Receive €10m investment from investors, including partners from previous funding rounds.

The launch of N26 Spaces, a feature that allows users to create separate accounts for different purposes and spending categories.

Developing new features for the mobile app, including the ability to lock and unlock a card, manage spending restrictions and payment notifications.

2016

Launch of the beta version of the N26 Business product for entrepreneurs and freelancers.

Expanding the list of supported currencies to nineteen in the N26 mobile app.

Secured €40m in new investment in a funding round from investors including Horizon Ventures and Battery Ventures.

Launch of the N26 Black product in France and Italy.

Signing a partnership agreement with TransferWise for currency exchange with transparent commissions and rates.

Obtaining a licence to provide financial services in France from the Bank of France.

Developing the company’s technology platform and improving the security and protection of customer data.

Recognition of N26 as one of the best mobile banks in Europe by the Global Mobile Banking Report.

2017

Obtained a US banking licence allowing N26 to enter the US market.

Entering the American market.

Secured new investment in a €160m funding round from investors including Tencent and Allianz.

Expanding the list of supported currencies to twenty-six in the N26 mobile app.

N26 Business product launch in the UK.

Introducing the Spaces feature, allowing users to create and manage separate wallets for deferred money.

Improved security and protection of customer data, including the introduction of two-step authentication.

N26 You product launch with personalised services and card in bright pink.

2018

Launching services in the UK, N26 becomes the first online bank to operate in this country after Brexit.

Obtained a banking licence from the German financial regulator Bafin.

Launch of services in Sweden.

The beginning of banking activities in Denmark, Norway and Finland.

Launch of services in Croatia, Latvia, Lithuania, Estonia and Ireland.

2019

Receiving $300m of investment for development.

Entering into a deal with Raisin allowing them to offer favourable deposits.

Launch of personal loans up to 50 thousand euros.

Improving the functionality of the mobile app.

Launch of services for corporate clients in Germany and France.

Partnering with TransferWise for real-time transfers.

Obtaining a licence to provide services in Brazil.

Launch Shared Spaces, a feature for sharing finances with other users.

Expanding operations in the Australian market.

2020

Announcement to cease doing business in the UK and close all accounts from 15 April due to the UK’s withdrawal from the EU.

Ability to transfer money to the US – N26 added a US money transfer feature in May 2020, allowing customers to quickly and conveniently transfer money to the US without hidden fees.

The appointment of former Dropbox executive Adrienne Gormley as the company’s chief operating officer.

A fine of €4.25 million for breaching AML (Anti-Money Laundering) rules.

N26 workers’ statement on low pay and high levels of stress at work.

Faced the company with issues related to the transition to a new platform, which led to problems accessing customer accounts.

Customer complaints of payment system errors and unauthorised debits from accounts, prompting regulators to launch an investigation.

N26’s accusations are that the company fails to deal with the high volume of complaints from customers and does not provide them with sufficient support.

2021

Increased investment: in February 2021, N26 reported raising a further €270m investment in an additional round of funding, raising the company’s valuation to €2.6bn.

N26 Smart launch. In March 2021, N26 launched a new product, N26 Smart, which allows customers to utilise an enhanced set of features for a small monthly fee.

Increase in customer numbers. By the end of March 2021, the number of N26 customers exceeded 7 million, 2 million more than a year earlier.

Revenue growth. In the first quarter of 2021, N26 reported a significant 120% increase in revenues, attributed to an increase in the number of customers and the expansion of its product line.

New app design. In May 2021, N26 released an updated design for its mobile app that is more intuitive and user-friendly.

Expansion in the US. In August 2021, N26 announced the launch of its services in the US, starting with New York State.

Valuation reduction. In September 2021, N26 reduced its valuation from €3.5bn to €2.2bn after the company was forced to adopt some changes to its business model to comply with regulators’ rules.

Security issues. In October 2021, some N26 users experienced security issues related to theft of money from their accounts.

Forced temporary suspension of operations in Australia after regulators raised concerns about anti-money laundering and counter-terrorist financing systems.

Founders’ departure. In November 2021, both of N26’s founders, Valentin Stalberg and Maximilian Teischner, announced their departure from the company. In a statement, they said that after ten years of working on the project, it was time for them to put the leadership in other hands. Stalberg and Teischner, however, remain on the board of directors of N26 and continue to support the development of the bank.

2022

Discontinued operations in the United States.

A 50 per cent increase in profits.

Introduction of cryptocurrency related transactions in Austria.

Loss of 14% growth, due to money laundering allegations.

A scandal involving inappropriate working conditions among employees.

Another change in leadership.

Partnership with Bitpanda. And opening a crypto-trading service.

Planning to move to an IPO by the end of the year.

Changing course from growth and expansion to cryptocurrency market development.

Developing and discovering new products related to cryptocurrency.

2023

In 2023, N26, Europe’s leading digital bank, made significant progress in financial and operational performance, as well as changes to its governance structure and business strategy:

• Financial Performance and Expectations:

1. • Significant growth in N26 gross profit, reaching €153.8 million in 2022, up from €111.6 million in 2021. For 2023, the company forecasts a further increase in gross profit to more than €220 million.
   • Gross profit margin is expected to improve to over 70% in 2023 from 65% in the previous year.
   • Significant growth in customer deposits, with managed funds of around €8 billion by the end of 2023, up 8% year-on-year.
   • The expansion of treasury operations has allowed N26 to capitalise on the growing interest rate environment, expecting interest income to account for about 40 per cent of the company’s total revenues in 2023.

• Investments and growth strategies:

1. • The Bank has invested significantly in compliance and infrastructure to combat financial crime, investing more than €80 million in 2022 in technology, teams and external expertise.
   • Despite a widening net loss in 2022, N26 expects its net loss to more than halve to €100 million in 2023, with ambitions to become profitable on a monthly basis in the second half of 2024.

• Changes to the manual:

1. • N26 has made changes to its leadership structure, strengthening its team with experienced industry experts.

• Fundraising and cost estimation:

1. • N26 is in talks to raise funds that could value FinTech between $8 billion and $11 billion, with a focus on a valuation of around $10 billion.
   • At least one more round of funding is planned before a prospective initial public offering (IPO) in 2023.

• Future plans and challenges:

1. • N26 is looking at expanding its offerings and potentially acquiring other FinTech companies to strengthen its position in areas such as trading or KYC (Know Your Customer).

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