German digital bank N26 to withdraw from the U.S.
Valentin Stalf (N26 founder and CEO) speaks at TechCrunch’s Disrupt Berlin Event at Treptow Arena, Berlin, Germany on November 30, 2018, in Berlin.
Noam Galai | Getty Images for TechCrunch
N26, the German digital bank is closing down U.S. operations just two-and-a half years after its launch in the United States.
N26 announced that its app will be no longer available to its 500,000 American customers starting Jan. 11, 2022. statement Thursday.
Berlin-based Fintech. valued at $9 billionIn a recent financing round, the company stated that it would like to focus on its core European business.
The bank stated that U.S. customers would be able use their accounts in the same way as before January 11th 2022. They will also receive instructions about how to withdraw funds, to facilitate a seamless transition.
This is not the first occasion that N26 pulled services out of a large English-speaking country. N26 has been unable to provide services in English-speaking markets. withdrew from the U.K.In early 2012, N26 was blaming France’s withdrawal from the European Union. N26 had reportedlybeen struggling to win U.K. customers
It is an example of the difficulties that European fintechs have had to overcome in order to increase their service offerings in America.
British digital bank Monzo started to test its services in the U.S. recently withdrew its application for a U.S. banking license.
Robinhood is an American online brokerage. tried and failed to launch internationallyIt has canceled plans to release a U.K.-based version of the app.
N26 stated it is refocusing its efforts on Europe. It will also increase spending on features such as investment products. Due to increasing demand, N26 is also looking at expanding into Eastern Europe.
According to the company, it plans to transfer U.S. employees to other parts of its business.
N26 has had a few setbacks in its U.S. expansion since July 2019. The firm fired 10% of its New York-based workers last year because it faced challenges due to the coronavirus epidemic. Nicolas Klopp, who was responsible for its U.S. operations left the bank.
N26 faces similar regulatory scrutiny in its own market. German regulators have fined N26 $5 billion for not submitting suspicious activity reports regarding money laundering in time.
Last month N26, which announced an additional $900 million in cash injections from investors, said that it had agreed with BaFin to restrict the number of customers it takes on board each month.
N26 has received $1.7 billion of funding. Investors include Coatue in the U.S., GIC of Singapore’s sovereign wealth fund and Peter Thiel, a tech billionaire.