PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

German Mobile Bank N26 Looks Toward the Future With Thoughts of First Acquisition

Laura Handly by Laura Handly
January 29, 2021
in Analysts Coverage, Fintech, Mergers and Acquisitions, Mobile Banking
0
Will COVID-19 Make or Break Digital Banks?

mobile bank app online banking vector illustration

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Despite their capacity to attract millions in venture capital, many fintechs struggle on the path towards profitability. They draw customers with promises of fee-free banking, responsive customer service, and innovative technology, but they lack many of the tools that traditional financial institutions use to make money. 

German fintech N26 has overcome this profitability challenge by introducing premium subscription-based accounts and a new “marketplace model,” which allows its customers to take advantage of products like trading and credit, while collecting fees from the third-party providers of these services.

With many fintechs struggling during the Covid-19 pandemic, some are expecting consolidation in the industry. By taking advantage of its subscription and marketplace models, N26 has put itself in a powerful position amongst fintechs and is expected to make its first acquisition shortly. 

CNBC reports more on the topic: 

“A big driver of N26′s revenues has been its premium subscription-based accounts, for which it charges between 4.90 euros to 16.90 euros for a range of additional features.

But Tayenthal said the big focus for 2021 will be a “marketplace” model, where it includes products it can’t offer itself — such as trading and credit — while taking fees from third-party providers in the N26 app.

‘In 2020, we actually brought down the burn significantly,’ Tayenthal said. ‘It is true that, at one point in time, while we are still investing into growth, expansion and building up the team, we also want to get more in the direction of profitability.’

The N26 co-founder said his company plans to hire an additional 200 employees this year. It currently employs 1,500 staff globally. The firm is also planning to expand into Brazil, having recently obtained a banking license in the country.

‘The environment in Brazil is actually very favorable,’ Tayenthal said. ‘Everyone has a bank account in the markets we’re in already; in Brazil, this is obviously not true.’”

Overview by Laura Handly, Research Analyst at Mercator Advisory Group

Tags: Covid-19CreditFintechMobile BankingN26
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Google Wallet Expands Features

    Google Wallet Continues to Bet on Digital with Expanded Features

    June 2, 2023
    digital value

    How Embracing Digital Value Can Help Solve the B2C Payments Conundrum

    June 1, 2023
    instant payments, real-time payments, RTP

    Banks Developing Instant Payments Products in the U.S. Should Focus on Billers to Generate New Revenue Streams  

    May 31, 2023
    Digital Wallet Use Delivers on Convenience and Security

    Digital Wallet Use Delivers on Convenience and Security

    May 30, 2023
    5 Ways to Protect Your Financial Institution from a Cyberattack

    5 Ways to Protect Your Financial Institution from a Cyberattack

    May 26, 2023
    traditional banks

    How Traditional Banks Can Modernize Without Risk

    May 25, 2023
    identity fraud

    Javelin’s Identity Fraud Study Highlights the Changing Nature of Fraud

    May 24, 2023
    SASE, security-as-a-service

    Security-as-a-Service Secures
    Distributed IT Models

    May 23, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download this complimentary report from CSG Forte: