German digital banking startup N26 makes U.S. strike

Jayson Oluwatimilehin

Born and raised in the United States of America by Nigerian parents, Jayson Oluwatimilehin is an avid writer and Journalist with specialty in researching about the entertainment industry.

Jayson developed interest in Journalism after he finished his education from Mountain Top University in Nigeria, finishing with a first class in English Language and interned for a few media companies in Lagos and bagged a higher diploma from the Nigerian Institute of Journalism before joining Theelitepost's editorial team.

You can contact him at jayson@theelitepost.com or give him a call on +23489765502
Jayson Oluwatimilehin

German digital bank N26 is finally coming to America through a phased rollout of its application based verification account and debit card, it revealed on Thursday.

The company’s American subsidiary N26 Inc will begin making its services accessible to the 100,000 customers on its American waitlist in the two weeks time and will fully make its services accessible to the public later this summer, it said.

The company is one of Europe’s most well-known “neo banks” that were set up over the past few years to compete with traditional banks by offering more user-friendly digital services.

It has amassed 3.5 million customers in 24 European markets since its initial launch in 2015 and raised more than $500 million from investors including Insight Venture Partners, Tencent and Peter Thiel’s Valar Ventures.

N26 holds a banking license in Europe. In the United States it is launching through a partnership with San Diego, California-based Axos Bank, which is a member of the Federal Deposit Insurance Corporation.

“As a long-term strategy I could see us getting a license (in the U.S.), but we are not in a rush,” Nicolas Kopp, U.S. CEO, N26 Inc, said in an interview.

The U.S. app will have many of the features that have made N26 popular in Europe, such as the ability to create sub-accounts it calls “spaces”, Kopp said.

The account will have no minimum balance requirement or monthly charges, he added.

Over the summer N26 will start offering two free withdrawals per month at ATMs nationwide and later introduce a premium account, the company said.

N26’s U.S. launch, which has been around two years in the making, comes less than a month after British digital bank Monzo started rolling out its services overseas.

N26 will also face competition from local digital banks, established U.S. banks and their digital offshoots, as well as a growing number of financial technology startups who have recently started offering banking services.

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