The German neobank N26, one of Europe's highest-valued fintechs, has seen strong revenue growth after the lifting of regulatory restrictions and is heading towards the net income zone. Co-founder Valentin Stalf told the Financial Times that revenue had risen by 40 percent to 440 million euros in 2024. For 2025, he expects further growth of 30 to 40 percent, accompanied by an "even stronger increase in gross profit." The bank has been recording operating profits since June 2024 and plans to double the marketing budget this year to promote growth.

Monthly new registrations are now at 250,000, significantly above the previous limit of 50,000 imposed by the German financial regulator BaFin in 2021 due to deficiencies in money laundering controls. The growth cap was lifted in mid-2024, and the supervisor appointed by BaFin left the company at the end of the year. "That was longer than we had hoped," commented an insider, but referred to the end of the mandate as a success. N26 has recently expanded its product range to keep up with competitors like the also rapidly growing Trade Republic. In addition to traditional banking services, N26 now offers investment accounts for ETFs and crypto trading. The competition between the two fintechs is especially intensifying in France and Spain, where both companies are expanding.

The business model of N26 is based on a diversified revenue base: one-third of the income comes from fees for premium services, another third from interest income, and the rest from card payments and transactions. At the same time, the bank has introduced a digitized fraud prevention system that analyzes over 300 data points and has significantly reduced fraud prevention costs. Stalf rejects speculation about an IPO. Insiders assume that an IPO could take place in two years at the earliest. The focus remains initially on sustainable growth and the consolidation of market position.