A Germany-based fintech company named ‘neobank N26’ – which is considered among the largest European institutions of its kind with having a valuation of more than $9B – is now all set to handle the trading of equities and crypto following its endeavors to have an expansion across the globe.
Even though it is known to be one of the early players in the spike of financial technology throughout Europe, the ambitions of neobank N26 (an online bank which is based in Berlin) caused a hindrance in the diversification of the services provided by it, as stated by Max Tayenthal (the co-CEO and co-founder of N26) in an interview.
Following its quit from the two important fintech markets of the United Kingdom and the United States, N26 has a strategy to be more focused on the European business thereof through the launch of the latest services and products to be delivered to more than 7 billion consumers thereof.
As per Tayenthal – having acknowledged that there is a requirement for the online bank to grow the product universe thereof, it is targeted by N26 that it would launch the business of crypto trading within the present year, preceding to the brokerage of equities, rather than being a participant of the new markets.
The mobile application of N26 does not presently provide crypto functionality, as well as the characteristics of the new coming products dealing with the trading of crypto, have not yet been disclosed by the platform. In November, neobank N26 declared to quit the market of the United States when it signaled that it would begin services and products for European Consumers.
From now onwards, the focus of N26 would be focused on spreading the digital banking experience thereof into the unique verticals by the inclusion of investment products during the impending year, as disclosed by the announcement.
A series of restrictions have been imposed on the venue by BaFin (the financial watchdog of Germany) in May of the recent year, partly because of the deficiencies in its controls regarding the confrontation of money laundering. It was ordered by BaFin that N26 (having incorporated approximately 170,000 latest consumers monthly in the previous year) is prohibited from onboarding above 50,000 consumers per month.
Explaining the BaFin-enforced latest consumer cap to be a huge prohibition hindering the expansion of the investor-funded fintech, it was stated by Tayenthal that he expects this situation to prolong till the late summer of 2022.