Mobile-Only Banking in Germany and Europe

Germany may still be a country where cash is king, but the way Germans do their banking and shopping has been changing in recent years. Millennials and other young people in Germany and Europe don’t want to bank and make payments the way their parents did. The young founders of N26 (“The Mobile Bank”) kept that fact in mind when they designed their new fintech venture from the ground up in 2013.

All N26 mobile banking is designed to work with your smartphone and your free MasterCard. PHOTO: N26

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Two Austrians from Vienna, Valentin Stalf and Maximilian Tayenthal, founded the Mobile Bank N26 in Berlin. Today Stalf is the CEO and Tayenthal the CFO of N26. After raising venture capital, the new mobile-only bank they founded launched in January 2015, offering banking via smartphone. Currently operating in most European nations, with core markets in Austria, France, Germany, Italy and Spain, N26 has no physical bank outlets, but it does have over 2.3 million customers across 24 European markets. The new Mobile Bank now has offices in Berlin, New York City, and Barcelona – with more than 500 employees. N26’s new Barcelona office, its second base in Europe, opened in 2018. The mobile bank began operating in the United Kingdom in November 2018, and also plans to begin serving customers in the United States in early 2019. In December 2018, N26 announced that it would be one of the first German banks to offer Apple Pay. In early 2019 N26 revealed $300 million in new funding led by Insight Venture Partners. The round also includes participation from GIC, Singapore’s sovereign wealth fund, and existing investors. This will enable N26 to be on solid footing as it expands to North America and other regions.

Your N26 Mobile Bank account includes Apple Pay on your iPhone. PHOTO: N26

ALSO SEE: Banks and Money in Germany

All N26 accounts offer an optional free debit card. PHOTO: N26

Without the expense of brick-and-mortar bank branches, N26 can pass on its lower operating expenses to its customers. All transactions, including loans, are conducted via a customer’s mobile phone (Handy in German) or the Mastercards issued by the bank. By early 2019, N26 announced it had over 2 million customers and had reached a monthly transaction volume of well over one billion euros. In Germany, N26 offers four different mobile banking plans, with fees ranging from free to €16.90 per month. Expats also appreciate an N26 feature not offered by most German banks: an English-language interface. Of course, if you prefer, you can conduct your mobile banking in German as well.

N26’s features, products, and options include:

• Intuitive mobile app for iOS and Android phones
• Account set up in under​ 8 minutes ​by smartphone using video identification
• A mobile interface in English as well as other local languages
• Security functions, such as locking and unlocking cards, with one click directly in the app
• Withdraw and deposit cash at more than 7000 retail partners with Cash26 across Germany
• Accounts: Free of charge ​current account; N26 Business for freelancers and self-employed; Premium Accounts: ​N26 Black​ and ​N26 Metal
• Mastercard payments abroad ​without any foreign exchange fee
• MoneyBeam – Send money to friends​ with one click ​by email or text message

Other N26 services include savings, consumer credit, investing, and insurance through partner firms. All N26 accounts include a free Mastercard and 3 to 5 free ATM withdrawals per month (€2.00 per transaction after that). You can also get a free optional Maestro debit card.

For more about N26’s services see this web link (N26).

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AT THE GERMAN WAY

• Banks and Money – Germany has a long banking tradition going back to 1619.
• How to Open a Bank Account in Germany – A how-to guide for expats in Germany
• The Euro
• Top German Banks – The top ranked banks in Germany, Austria and Switzerland
• International Money Transfers

ON THE WEB

• The euro area – ec.europa.eu – All about Europe’s currency, which went into circulation in January 2002.
• Currency Fair – International currency transfers at the best exchange rate!

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