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Fintech N26: On the way of becoming a mobile global bank

The Berlin Fintech N26 wants to become the first mobile global bank, collects investor money and has a value of 2.3 billion euros.

German fintech N26, the chosen one

Insurer Allianz and China’s Internet giant Tencent have one thing in common: their preference for the German fintech N26. In a recent round of financing, they participated with other investors in the startup in Berlin for about € 143 million. Its concept of using Internet-based banking services to shake up the industry via smartphone-affine customers seems to fit in with the digital ambitions of corporations.

The most important financial transactions of everyday life purely on the phone – that also fascinates other well-known venture capitalists. They had already invested heavily in N26 in their belief in the success of mobile banking. The fintech is seen here as an international pioneer. In total, more than 500 million euros have been collected so far.

2.3 million customers and 2.3 billion euros in goodwill

N26 has only been active since 2016 with a full bank license from the Bafin or ECB. Previously, it used the services of Wirecard Bank since 2013. Despite the short time has N26 according to own data already 2.3 million customers in completely Europe. With the fresh money, the market in the UK and especially the US should now be conquered. There, however, it will not go without expensive marketing campaigns.

So far, the Berliners came out largely without advertising, which has saved the young company a lot of money. Although red numbers are still being written, if, as hoped, the number of customers increases fivefold in a few years, the business should become a money machine. Then N26 would have twice as many customers as the savings banks, which come to 50 million. It still has to get that far.

But even now, the young bank can come up with impressive numbers: it is rated at 2.3 billion euros. Not only the management consultancy Price Waterhouse speaks of the “first German Unicorn”, a young, innovative company, which has reached a market value of over 1 billion US dollars. For comparison: The AAreal Bank in the Mdax comes only to 1.7 billion euros. And with a market capitalization of currently € 7.75 billion, Commerzbank is only three and a half times as heavy.

In any case, N26 is no longer an easy takeover target due to its comparatively high company valuation. With its potent partners, the bank has every chance of quickly gaining a place among the big financial institutions. The self-imposed goal is to become the “first global mobile bank”.

Fintech N26 is not planning an IPO

This could be helped by the enormous potential of most young customers, for whom life without a smartphone and app is almost unthinkable. Because N26 is a bank, which was developed purely for mobile devices. The customer magnet was a free checking account with Mastercard. The costs are low aand the operation of the online account is easy. Open an account in minutes and without paper by video identification. All account functions run through the app.

In the spirit of the times: Customers can transfer money with each other, whereby one does not even have to know the account number. Mail address or mobile number are sufficient. A special feature displays all revenues and expenses so that the customer has his finances under control. Cash can be withdrawn from certain retailers, gas stations or Mastercard ATMs. For some time now also a savings account is offered, as well as a deposit and loans.

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