European mobile bank N26 preps US launch

European mobile bank N26 preps US launch

European mobile-only banking platform N26 is planning to open its virtual doors in America by the middle of next year.

Launched in Germany and Austria in January 2015, N26 began as a current account with a Mastercard. It now operates as a fully-featured bank, reaching 500,000 customers in 17 European countries.

Customers get access to an instant overdraft, international transfers into 19 currencies through a tie-up with TransferWise, investment options via Vaamo, real-time consumer credits up to EUR25,000, and savings accounts from banks across Europe thanks to a recent deal with Raisin.

Now it has set its sights on the US market, inviting people to join a waitlist ahead of a mid-2018 launch. Rather than go through the arduous licensing process, it will follow the model of neo-banks such as Simple and Moven by partnering with a regulated financial services firm.

Says a blog: "Without physical locations, we’ll be able to easily expand into all corners of the US while offering the same seamless, user-friendly experience that has already spread across Europe."

Comments: (1)

A Finextra member
A Finextra member 24 October, 2017, 14:31Be the first to give this comment the thumbs up 0 likes

I wonder how legacy banks compete with such an approach of sourcing core services from a range of innovative third parties. At present, the banks are like an automotive OEM that does EVERYTHING in-house. In real life, 90% of car components and systems are sourced from Tier 1 suppliers - to ensure competitiveness as the collective R&D efforts in a given field almost always wins.