In Brief:
- German bank N26 announced its withdrawal from the US market.
- The current accounts cease to exist 11th January 2022 onwards.
- The bank intends to focus on the European market from now on.
German digital bank N26 announced it is closing down their operations in the US and will no longer be available from 11 January 2022.
As stated in the press release, N26 is set to increase its focus on European business and plans to offer additional financial products and services.
N26 is also considering future expansion into additional Eastern European markets in response to rising customer demand in the region.
The neobank recently got scrutinized for alleged money-laundering issues, with the German regulator BaFin limiting the number of users it accepts until the problems get resolved.
“Learnings from N26’s two years of growth in the US market are being constantly applied as it further expands its product portfolio and scales its global business,” the online bank stated.
Last month N26 even secured a $900 million raise from investors including Third Point Ventures and Coatue, with a $9 billion valuation.
N26’s switch towards the European market is a given following the company’s withdrawal from the UK market last year and now the same fate with the US market.
A lot of countries are strengthening their regulatory policies which are affecting a majority of the online banks and cryptocurrency exchanges.
Earlier in October global crypto exchange Binance stopped offering their products and services in South Africa after failing to abide by the strict regulations put forward by FSCA.
