Record figures – How the online bank N26 is now growing “unstoppably”.

This year, the smartphone bank expects 40 percent more business and 4.8 million customers. “This year we will achieve almost half a billion in annual turnover,” says founder Valentin Stalf, originally from Vienna. A gross turnover of 440 million euros is expected this year. In the coming years, the N26 will evolve towards a billion annual turnover. The transaction volume is also increasing. This year it amounts to 140 billion euros.

The good profits are mainly due to the good interest rate environment. The neobank has more than ten billion euros in savings deposits; like all banks, high interest rates have driven up profitability. Net interest income increased by more than 100 percent in 2023 and will also increase significantly this year.

100 million euros to combat money laundering
Until the middle of this year, N26 was allowed to accept a maximum of 60,000 new customers per month, previously only 50,000. The German banking regulator saw failures in anti-money laundering measures. After the bank had invested heavily in fighting crime, the restrictions were lifted, which had a positive impact on Berliner Bank’s growth figures. “Today we are pioneers in the fight against fraud,” says Stalf. The bank has already invested more than 100 million euros in measures against money laundering. AI is also used here to detect fraud and reveal patterns.

N26 is already active in 24 markets. “Next year it is expected that even more markets will be added; we still see good opportunities, especially in Eastern Europe,” says Stalf. But there is still plenty of room for growth in the existing markets. “Our awareness is below 50 percent in most markets. “There is still a lot of catching up to do here,” says Tayenthal. It is the market leader in the major markets of Spain, France and Germany, even ahead of its major British competitor Revolut. Italy is also an important market, but there are still restrictions here that N26 wants to get rid of soon.

$9 billion valuation for the neobank
At its last valuation, the company was valued at $9 billion. The two founders, Maximilian Tayenthal and Valentin Stalf, each own 12.5 percent of the shares, making them among the richest 100 Austrians.

In the future, the company also wants to focus more on business customers, lending and investments. In the Netherlands, mortgage loans are already offered in addition to small consumer loans. “In the Netherlands, the volume of real estate loans is almost as high as in Germany, which is five times as large. This is therefore an interesting market for us,” says founder Maximilian Tayenthal. The Dutch generally own much more real estate than here. N26 has already provided a loan volume of 600 million euros there. This will be expanded to other countries in the future.

In the business customer sector they also want to compete with the established banks. Previously this was only possible for freelancers, but in the future companies with multiple employees will also be able to become N26 customers and carry out their business banking transactions 100 percent digitally. The prices will be very attractive.

Cell phone contract rumors
The company’s cell phone plans have also been rumored for quite some time. Discussions are underway with a start-up, and something concrete could come soon that would also increase the bank’s reputation.

The offer for small investors in cryptocurrencies or shares and funds is also being expanded. However, these areas only represent a small part of sales. “We want to roll out all offers as best as possible in all our markets,” says Stalf.