German online bank N26 to withdraw from the United States

The German online bank N26, currently in the eye of the supervisor of the sector, announced Thursday its next withdrawal from the United States, after having launched there in 2019, when it wants to strengthen its presence in Europe.

The online banking activity "

" according to a statement from the bank.

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Founded in 2013, the Berlin-based company entered the North American market in August 2019 with significant investment.

Today it has half a million customers in this country, out of a total of 7 million including Europe, where it is present in 24 countries.

The 60 or so people working in the New York office will be offered positions elsewhere in the bank, which does not anticipate layoffs at this stage.

Rise in Eastern Europe

In October, the bank raised $ 900 million from private investors and announced plans to hire 1,000 additional employees to bolster its product development, technology and cybersecurity teams.

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While putting an end to the adventure in the United States, N26 wants to continue to focus on its European activities, with the emphasis on “

” of financial products and services “

”. It is

“

” in the face of strong demand in this region.

The US ax comes shortly after Germany's financial regulator Bafin appointed a special representative to oversee N26's activities, deeming the young bank too unorganized to deal with various risks associated with its operations.

In the spring, Bafin also imposed a fine of 4.25 million euros on N26 for late reporting of suspicions of money laundering.

It must immediately reduce its recruitment of new customers to "

" to slow down its growth.

N26 is keeping its sights outside Europe, preparing to conquer the Brazilian market, where it already holds a banking license.

The bank left the United Kingdom in early February 2020 following Brexit.