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N26 won’t serve new customers without ensuring an investment offer

About a year and a half after the launch N26 ended its investment offer for now. So far, German bank customers could invest their money through the Robo-Advisor Vaamo in so called ETFs. This partnership has been stopped for the time being, as Vaamo founder Thomas Bloch confirmed on demand. The British competitor Moneyfarm had recently taken over Vaamo. Moneyfarm and N26 would talk about how N26 invest can look like in the future.

What N26 says

A N26 spokeswoman stated that, “We are currently reviewing our offer for N26 invest to ensure that it meets our customers needs. That’s why N26 decided to pause service for new customers first.” To further backgrounds, N26 did not comment.

The bank customer service writes on demand, so far it is not planned to offer a new investment product. Because of the relatively high fees consumer advocates had criticized the product to start. With low investment amounts fees would eat up the profit, was the criticism.

N26’s strategy

The current move demonstrates N26’s strategy to focus on geographic expansion. Right now, entry into the US market is imminent. The various financial products that N26 offers with fintech partners are mainly available on the German market. Exceptions are foreign transfers, which are also available in other markets in cooperation with Transferwise. In the past, partnerships were seen as an important source of revenue for fintech. In the meantime, the startup is trying to make some money, especially with its premium products Black and Metal.

How the startup beats

Annual Report 2017 shows that, 20 Euro revenue per customer banking startup N26 presents business figures. So far, they do not know much about the figures of the German flagship N26 finisher. The consolidated financial statements now provide information on sales, marketing costs and cash burn.

Also published on Medium.

Published inFintech

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