N26
Key Data
- Trading Name: N26
- Legal Entity: N26 GmbH
- Activities: Neobank
- Location: Berlin, Germany
- Regulation: authorized by the BaFin
- Key People: Valentin Stalf (Linkedin) and Maximilian Tayenthal (Linkedin)
- News feed: N26
- Latest update: Aug 9, 2024
N26 is a German fintech headquartered in Berlin, Germany. The company was founded in 2013 by Austrians Valentin Stalf (Linkedin) and Maximilian Tayenthal (Linkedin) in a Rocket Internet Incubator.
Offering
N26 offers a comprehensive suite of banking services designed to cater to a wide range of customer needs. Here’s an overview of its current offerings:
Bank Accounts
- N26 Standard:
- Free account with a virtual card (physical card available for €10).
- Unlimited domestic cash withdrawals and three free ATM withdrawals per month in the EU.
- Contactless and mobile payments.
- Free global payments.
- N26 Smart:
- Monthly fee of €4.90.
- All features of the Standard account plus a physical debit card.
- Additional budgeting tools and spending insights.
- N26 You:
- Monthly fee of €9.90.
- Includes all Smart features, plus travel insurance, and five free ATM withdrawals per month globally.
- N26 Metal:
- Monthly fee of €16.90.
- All You features, plus 15 free monthly trades for stock and ETF trading, premium customer support, and higher interest rates on savings.
Investment Products
- Stocks and ETFs: N26 has recently launched a trading platform allowing customers to invest in fractional shares of popular European and US assets. Customers can trade with a flat fee of €0.90 per transaction, with free trades included for Metal and You account holders (15 and 5 free trades per month, respectively). This service is expected to enhance customer engagement and diversify N26’s offerings.
- N26 Crypto: Customers can trade over 200 cryptocurrencies directly within the app.
Savings Options
- Instant Savings Account:
- Offers competitive interest rates based on account tier: up to 4% for Metal customers, 2.26% for You and Smart customers, and 1.26% for Standard customers.
- Interest is calculated daily and paid monthly, with no deposit limits.
Additional Features
- Paces: Allows users to create sub-accounts for budgeting and saving.
- Real-Time Notifications: Users receive instant alerts for transactions to help manage their finances effectively.
N26 aims to provide a seamless banking experience through its mobile app, combining traditional banking services with innovative investment and savings products to empower customers to manage their finances efficiently.
Customer Feedback
On Trustpilot, N26 holds a 3.8-star rating from more than 31,000 reviews (Aug 9, 2024) with a corresponding “Great” trust level.
Regulation
N26 is regulated as a bank by the German BaFin. The German financial regulator lifted its restrictions on N26’s new customer onboarding, effective June 1, 2024. Previously, these restrictions, imposed in 2021, capped N26 at onboarding no more than 60,000 new customers per month. With these limits now removed, N26 is poised for significant customer base expansion over the next 18 months.
Experienced Issues
Notable criticisms and challenges faced by N26, the German digital bank:
- Fines and Anti-Money Laundering (AML) Issues: In May 2024, Germany’s financial regulator BaFin imposed a €9.2 million fine on N26 for systematically submitting delayed suspicious activity reports in 2022. (Reuters)This followed a previous fine of €4.25 million in 2021 for similar AML compliance failures. (BaFin)
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Customer Service and Account Freezes: N26 has faced criticism for unresponsive customer support and sudden account closures without prior notice. Some customers reported difficulties in resolving issues or regaining access to their accounts after such actions.
- Security Concerns: In 2016, security researchers identified vulnerabilities that could allow unauthorized access to customer accounts. Although N26 addressed these issues, subsequent phishing attacks led to further criticism regarding the bank’s security measures and account recovery processes.
- Market Exits: N26 withdrew from the UK market in 2020, citing Brexit-related challenges, and exited the US market in 2021 to focus on its European operations. These strategic retreats raised questions about the bank’s global expansion plans.
- Corporate Governance: In 2023, N26 faced criticism for “dysfunctional” corporate governance, including challenges in meeting regulatory requirements and internal management issues.
Rating Conclusion
As a regulated and intensively audited bank, we put N26 on our Green Compliance List. Based on the positive customer feedback, we have also placed the fintech on our Green Risk List.
