German Challenger Bank N26 Bank Gmbh Announces Launch In UK
Abraham Darwyne
Company News
14:59, 12th October 2018

The entry of N26 is a credit negative for established banks and similar fintech challenger banks according to a report posted by Moody’s.

The German fintech challenger bank has had successful market launches across Europe with plans to launch in the US in quarter one of 2019. 

It has had high-profile fundraising rounds, receiving backing from the likes of billionaires Peter Thiel, Li Ka-shing and global investment firms Tencent and Allianz.

The Moody’s report stated; “N26's rapid expansion to 1.5 million customers poses a threat to Revolut and Monzo, two UK-based fintechs with comparable business models”

As of now, N26 already has 50,000 on the waiting list for its platform in the UK. 

A European financial “passport,” is expected to allow the bank to operate for a certain period post the March 2019 Brexit-date, until a new UK banking license is issued.

Revolut, which is doing business internationally without a full banking license, currently reports a customer base of more than 2 million, while Monzo’s client base is around 1 million, predominantly operating in the UK with a full banking license.

Moody’s “expects N26's customer base to exceed 2 million users in first-quarter 2019, reflecting the bank's recent rapid growth rate”.

N26 has announced plans to reach more than 5 million customers by 2020 and aims to reach profitability in the second quarter of 2019. 

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