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N26 to Enter Stock, ETF Market with 2024 Product Launch

The Berlin-based neobanking startup N26 has halved its net loss and expects to achieve profitability next year. According to preliminary results summarizing 2023, the forecasted revenue grew 30%. Meanwhile, the lifting of regulatory controls imposed two years ago, which limited the number of N26 customers, is expected to help the company turn a profit in the coming months.

N26 Group Aims for Profitability

2023 is set to be a pivotal year for N26, with projected revenue exceeding 300 million euros, marking an increase of more than 30% year-over-year (YoY). This growth is primarily driven by a surge in customer activity and an improvement of 8% in revenue-relevant customers, now totaling 4 million. The transaction volume has also developed significantly, with expectations of reaching over 110 billion euros.

N26 Group has shared ambitious financial targets and unveiled plans for a new trading product in collaboration with Upvest, a German fintech firm. The mobile banking giant anticipates launching this investment platform, featuring stocks and ETFs, within the first half of 2024. This move comes as part of N26’s broader strategy focused on sustainable and profitable growth, including enhancing customer engagement and diversifying its product offerings.

We’re wrapping up the year with an exciting update on the profitability expectations of the N26 Group and our upcoming investment product. Take a look: https://t.co/rqPiaMSgf3

— N26 (@n26) November 29, 2023

The company’s gross profit margin is expected to cross the 70% threshold in 2023, a considerable leap from the previous year. Moreover, N26’s annual deficit is projected to more than halve to around 100 million euros in the same period.

“The volume of transactions made by N26 customers also grew significantly in 2022 compared to the previous year to more than 97 billion euros (+22% YoY),” the company commented in the press release. “For 2023, N26 anticipates further growth in transaction volume of around 13% to more than 110 billion euros.”

N26 Unveils New Investment Product

Also, the company has unveiled plans for a new trading product in collaboration with Upvest, a German fintech firm. The mobile banking giant anticipates launching this investment platform, featuring stocks and ETFs, within the first half of 2024. This move is part of N26’s broader strategy focused on sustainable and profitable growth, including enhancing customer engagement and diversifying its product offerings.

“In partnership with German fintech Upvest, N26 customers will have the opportunity to trade stocks and ETFs directly in the N26 app within the first half of 2024,” the company added.

The introduction of the new product follows the company’s expansion into cryptocurrencies at the end of 2022, with the trading of these digital assets launched in more countries a few months later.

N26 has also invested in its infrastructure and team, focusing on combating financial crime and improving compliance. These decisions are expected to lead to a marked improvement in operating income, projected to be around 80 million euros in 2023, and pave the way for monthly profitability in the latter half of 2024.

Neobank Valuation Drops by $6 Billion in Two Years

Allianz SE’s Munich-based subsidiary is set to sell about 5% of its shares in the German digital bank N26 at a significantly reduced valuation, setting the company’s worth at around $3 billion, according to the Financial Times report. This move by Allianz X, the corporate venture fund of Allianz SE, involves seeking advisory services to divest its N26 holdings. These shares are currently priced 68% lower than the $9 billion valuation in 2021, indicating a repositioning of N26’s standing among Europe’s top fintech companies, behind peers like Klarna and Revolut.

In recent developments, Berlin-based N26 has reinforced its senior leadership with three new appointments this April. Carine van der Heijden has joined as the Vice President of Brand Marketing, Kertu-Liina Lehismae has taken on the role of Director of Digital Marketing and Global Media, and Nicole Heider has stepped in as Director of Labor Relations and Employment Law, signaling N26’s continued focus on strategic growth and leadership expansion.

The Berlin-based neobanking startup N26 has halved its net loss and expects to achieve profitability next year. According to preliminary results summarizing 2023, the forecasted revenue grew 30%. Meanwhile, the lifting of regulatory controls imposed two years ago, which limited the number of N26 customers, is expected to help the company turn a profit in the coming months.

N26 Group Aims for Profitability

2023 is set to be a pivotal year for N26, with projected revenue exceeding 300 million euros, marking an increase of more than 30% year-over-year (YoY). This growth is primarily driven by a surge in customer activity and an improvement of 8% in revenue-relevant customers, now totaling 4 million. The transaction volume has also developed significantly, with expectations of reaching over 110 billion euros.

N26 Group has shared ambitious financial targets and unveiled plans for a new trading product in collaboration with Upvest, a German fintech firm. The mobile banking giant anticipates launching this investment platform, featuring stocks and ETFs, within the first half of 2024. This move comes as part of N26’s broader strategy focused on sustainable and profitable growth, including enhancing customer engagement and diversifying its product offerings.

We’re wrapping up the year with an exciting update on the profitability expectations of the N26 Group and our upcoming investment product. Take a look: https://t.co/rqPiaMSgf3

— N26 (@n26) November 29, 2023

The company’s gross profit margin is expected to cross the 70% threshold in 2023, a considerable leap from the previous year. Moreover, N26’s annual deficit is projected to more than halve to around 100 million euros in the same period.

“The volume of transactions made by N26 customers also grew significantly in 2022 compared to the previous year to more than 97 billion euros (+22% YoY),” the company commented in the press release. “For 2023, N26 anticipates further growth in transaction volume of around 13% to more than 110 billion euros.”

N26 Unveils New Investment Product

Also, the company has unveiled plans for a new trading product in collaboration with Upvest, a German fintech firm. The mobile banking giant anticipates launching this investment platform, featuring stocks and ETFs, within the first half of 2024. This move is part of N26’s broader strategy focused on sustainable and profitable growth, including enhancing customer engagement and diversifying its product offerings.

“In partnership with German fintech Upvest, N26 customers will have the opportunity to trade stocks and ETFs directly in the N26 app within the first half of 2024,” the company added.

The introduction of the new product follows the company’s expansion into cryptocurrencies at the end of 2022, with the trading of these digital assets launched in more countries a few months later.

N26 has also invested in its infrastructure and team, focusing on combating financial crime and improving compliance. These decisions are expected to lead to a marked improvement in operating income, projected to be around 80 million euros in 2023, and pave the way for monthly profitability in the latter half of 2024.

Neobank Valuation Drops by $6 Billion in Two Years

Allianz SE’s Munich-based subsidiary is set to sell about 5% of its shares in the German digital bank N26 at a significantly reduced valuation, setting the company’s worth at around $3 billion, according to the Financial Times report. This move by Allianz X, the corporate venture fund of Allianz SE, involves seeking advisory services to divest its N26 holdings. These shares are currently priced 68% lower than the $9 billion valuation in 2021, indicating a repositioning of N26’s standing among Europe’s top fintech companies, behind peers like Klarna and Revolut.

In recent developments, Berlin-based N26 has reinforced its senior leadership with three new appointments this April. Carine van der Heijden has joined as the Vice President of Brand Marketing, Kertu-Liina Lehismae has taken on the role of Director of Digital Marketing and Global Media, and Nicole Heider has stepped in as Director of Labor Relations and Employment Law, signaling N26’s continued focus on strategic growth and leadership expansion.

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