To date, N26, the European digital bank, has only been able to take on up to 60,000 new customers per month. However, following a decision by the Federal Financial Supervisory Authority (BaFin), this restriction will be lifted from the month of June.
The news follows a period of close exchange between N26 and the regulator to combat financial crime and money laundering. This will continue even after the growth restriction ends. In addition, the exchange with the special representative will continue until the end of 2024.
Valentin Stalf, founder and CEO of N26
Valentin Stalf, CEO of N26 said: “In recent years, we have been able to make significant progress in preventing and combating money laundering and financial crime. We look forward to continuing our close exchange with the regulator in the future.”
Expanding services to the masses
Over the past two years, N26 has invested more than 100 million Euros in compliance and its infrastructure and teams to effectively combat money laundering and financial crime, as it prepared to onboard a higher number of new customers.
The systems that will enable this include, among other things, sophisticated intelligence-based models that analyze the fraud potential of individual customers before they even open an account with N26. They additionally include self-learning transaction monitoring systems that protect the company’s customers by detecting suspicious activity in real time.
Maximilian Tayenthal, co-CEO and COO of N26
Maximilian Tayenthal, co-CEO and COO of N26: “Our infrastructure and our use of modern, intelligence-based technology enable us to detect and combat fraud and money laundering in real time. We want to play a pioneering role among European banks in this field over the next few years.”
N26 is seeing growing customer demand for its mobile banking app and the new products it launched in the first half of 2024. Thanks to Instant Savings accounts with up to four per cent interest on deposits, a competitive stocks and ETFs trading offering, and joint accounts, customers across Europe can now manage all aspects of their financial lives directly within the N26 app.
As a result of the BaFin’s decision, the company expects to reach monthly profitability in the second half of 2024.
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