Five months. A quarter of a million new U.S. customers.
That’s the news from Berlin, Germany-based challenger bank, N26, which announced this week that it has added 250,000 new customers in the U.S. within five months of its August launch.
Calling American consumers “too reliant on traditional banks,” N26 U.S. CEO Nicolas Kopp suggested that the wave of new U.S. customers was just the beginning. “We’re incredibly proud to have reached a quarter-million U.S. customers in our first five months and we’re just getting started. We have big plans to offer millions of future N26 users a feature-rich, easy-to-use banking experience.”
The challenger bank, which launched in the U.S. last year courtesy of a partnership with Axos Bank, offers its new U.S.-based customers a regulated, FDIC-insured account, a Visa debit card, and basic spending management tools like account activity display, daily spending limits, and automatic transaction categorization. In December, N26 introduced its Perks program for U.S. customers, giving them cashback rewards and discounts for purchases made on their N26 debit card.
N26 gives its customers the ability to open accounts in less than five minutes, transfer money to friends instantly with MoneyBeam, and leverage a tool called Spaces to open sub-accounts to manage savings goals. The accounts have no hidden fees, and accountholders have access to a network of more than 55,000 surcharge-free ATMs. Customers who sign up for direct deposit can access their pay up to two days early.
Gains in the U.S. notwithstanding, N26 points to Europe as the source of most of the growth in its customer base – which reached 3.5 million last summer and now stands at five million. N26 co-founder and CEO Valenti Stalf heralded the five million customer milestone, but suggested the achievement is only a step on the journey the company has set out for itself when it was founded in 2013. “(We) have not forgotten our original mission – to challenge an industry that is ripe for change,” Stalf said. “N26 has proved that banking can be simple and intuitive through the use of technology.”
N26 has raised more than $680 million in funding, with $470 million of the challenger bank’s equity capital coming last year.