July 22, AtoZForex – A Berlin-based bank N26, previously known as Number 26, has acquired full banking license in Germany. Freshly licensed bank is planning to expand its mobile banking service throughout the whole Europe.
N26 German Banking license and opportunities it brings
The official press release of the N26 bank states:
Number26 becomes N26 and receives a banking license: only 1,5 years after product launch, the FinTech’s N26 Bank is awarded a full German banking license by the Federal Financial Supervisory Authority (BaFin) and the European Central Bank. This provides the regulatory approval to conduct banking operations across Europe. Besides its one-of-a-kind banking products for smartphones, N26 operates Europe’s most modern banking technology platform. Combined with a low-cost organization overall, this gives N26 the enormous competitive edge to create sustainable change in the banking value chain beyond a frontend application.
Earlier, when N26 did not possess the license, it has to rely on Germany-based financial services company named Wirecard. N26 was offering its banking services via Wirecard for a fee. Now, when German bank finally received the license, it has reduced its costs. Additionally, now German bank is able to offer its own services, develop its fundamental technology and expand to other European countries, as it was commented by N26.
Valentin Stalf, the co-founder and CEO of N26 has stated:
“This banking license is an important additional step for us to sustainably change the value chain in retail banking. This will allow us to significantly enhance the diversity of our product portfolio."
N26 will go to the UK?
N26 was one of the digital-only banks, applying for a banking license, as the bank has admitted the need to improve the scale and to have a broader range of services in order to effectively play on the market.
Moreover, as N26 German Banking license was acquired, earlier this month UK bank Sterling has received a banking license before its planned launch in January 2017. Also, in March this year, German Federal Financial Supervisory Authority (BaFin) has awarded the solarisBank with the banking license. solarisBank is looking to promote its platform to digital-only banks.
N26 is currently operational only in Germany and Austria, but Valentin Stalf says that another branch of N26 could be established in the UK this year or in 2017, despite Brexit turmoil. What is more, N26 has raised more than $50 and got Silicon Valley billionaire Peter Theil as one of its investors. Nevertheless, the firm has also experienced some issues, as earlier 400 customers of N26 had their accounts accidentally closed.
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