Maximilian Tayenthal admits mistakes

The N26 founder explains to the Financial Times that N26's rapid expansion was a mistake. The fintech would have been better off focusing on new products or business areas such as cryptocurrency trading.

There has been bad news at N26 for months, now founder Max Tayenthal tells the Financial Times "Should we have built up the trading and crypto divisions instead of launching in the US? In hindsight, it might have been a smart idea." Neobank had closed its business in the US in November, having previously also withdrawn from the UK. There are "so many things we could be working on instead of opening up new markets", Tayenthal continued. For example, N26 wants to expand its "product universe and we need to do that."

The fintech received a valuation of around nine billion euros in 2021, but had to tolerate a special representative in its offices as a measure by the German Federal Financial Supervisory Authority (Bafin). Bafin complained of deficiencies in risk management and insufficient anti-money laundering measures. In addition, Bafin has limited the number of new customers to 50,000 per month in the EU.

For Tayernthal, this is a "massive restriction", which he expects to be lifted by the end of the summer. N26's investors also play a role in this: "There is great confidence in our ability to remove these growth restrictions again," says Tayenthal. In response to BaFin's requirements, N26 had changed its compliance regulations and controls and also expanded its management team.

N26 is now planning to enter the cryptocurrency and equities business. Tayenthal then wants to possibly prepare the fintech for an IPO. However, this is only one option for the future of N26, he said.