The online bank N26, founded by two Viennese in Germany, continued to grow in 2021, but also increased its loss. At the moment it is important that the transactions and activities per customer increase considerably. N26 is also constantly expanding the range – so access to cryptocurrencies is prepared, only regulatory approval is missing, say N26 founder Valentin Stalf and CFO Jan Kemper.
Entering the crypto segment is important for N26, not so much because of the crypto products themselves, but as a “scourge of what our investment and trading side will look like in the future” because it will be similar to what is being launched in the crypto market. . side, according to Stalf. Details should be available in a few weeks.
“What makes us most proud is that we are probably the app with the most active customer base in Europe,” said Stalf. The transaction volume has increased by 50 percent, the number of registered customers has increased by one million to eight million at the end of 2021. However, the bank only realizes sales with just under half (3.7 million customers), the others are either inactive or only use free products that do not generate revenue for N26. However, according to Kemper, customers would often start with free products and then switch to payment services.
Customer growth “very limited”
There has been only “very limited” customer growth this year, not least because the German financial regulator has instructed the bank to take on a maximum of 50,000 new customers per month. In Italy, the regulatory body even completely banned the adoption of new customers this spring because they saw shortcomings in the implementation of anti-money laundering regulations. When the conditions are lifted depends on the decisions of the regulators, Stalf and Kemper emphasize, but from their point of view, relations with the authorities have improved significantly.
When exactly the numbers will be in black, Kemper and Stalf did not want to commit themselves. But the EUR 700 million financing round at the end of 2021 would have been the last before breaking even. An IPO is currently not on the agenda, but N26 is preparing further so that this step would in principle be possible if desired.
In 2021, N26 gross income increased by half to EUR 182.4 million, and net interest and commission income increased by two-thirds to EUR 120.3 million. Customer deposits rose by half to EUR 6.1 billion. But the administrative burden has also increased considerably. The bottom line is an annual loss of €172.4 million – significantly more than in 2020, when the loss was €150.7 million. 35 to 40 percent of the revenue comes from account management fees and 30 percent each from the use of the N26 cards and the investment of customer funds by the bank.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
