N26 Gets Green Light: No More Customer Number Limitations

The online bank N26 is approaching a new chapter in its growth story. As reported by the institute, the Federal Financial Supervisory Authority (BaFin) has given the green light to lift the restrictions on the number of new customers. In response to delays in reporting suspected money laundering cases and other deficiencies in risk management, BaFin imposed growth constraints on the fintech in November 2021. Originally, N26 was only allowed to welcome 50,000 new users per month. After N26 improved internal processes and brought on board a special commissioner appointed by BaFin to monitor compliance, the cap was raised to 60,000 new customers per month in December 2023. Effective from June 1, 2024, the limit will be removed entirely, while the special commissioner will continue to be present until the end of the year. N26 co-founder Valentin Stalf highlights the successful closure of this chapter as an essential milestone. In an interview with the German Press Agency, he emphasizes the importance of satisfactorily resolving the compliance issue and establishing a strong relationship with the regulator to take a leading role in retail banking. The removal of the customer limit will have a noticeable impact on N26's business operations, with the bank planning to intensively inform the public about its new product offensives, such as savings products, trading in stocks and ETFs, and joint accounts, in the coming months. With active services in 24 European countries and about 1,500 employees, including around 1,000 at the Berlin location, N26 has become one of the most valuable German fintech companies – a status that is now further solidified by the BaFin decision.